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The F1AutoCash Guide
“How To Buy and Sell
Cars and Profit -Even In
This Economy ”
By: Tony Bandalos
©F1AutoCashFormula.com | HowToBuyAndSellYourCars.com
Income Disclaimer & ©Copyright.
Legal Copyright Notice:
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This information is protected by copyright laws world wide and may
not be reprinted, copied, transmitted, redistributed, hosted, displayed
or stored electronically on-line or by any means whatsoever unless
permission granted in writing by author Tony Bandalos.
Names of people, service marks, trademarks, companies and brand names
are all property of their respective owners and are used for editorial
commentary purposes as permitted under law.
The information contained in this e-book is for educational and tactical
purposes only. Monetary claims made are from personal experiences. No
information in this book is to be considered personal or legal advice. You
must check with your local, state and country laws before performing ANY
of the methods in this book.
The author of this book / e-book will not be held responsible for any actions
related to how you decide to use this book. Anything that you are inspired to
do or take action on, based on the materials that you read in this book are
your own personal responsibility. Please seek legal advice for any questions
that you may have about the buying and selling of cars.
You are solely responsible for your own actions when using this manual. I
make no guarantee that you will make any money with this information.
Everybody has their own levels of passion and desire to become successful,
exercising personal growth and development are your own personal choices.
©F1AutoCashFormula.com | HowToBuyAndSellYourCars.com
Introduction
Hi my name is Tony Bandalos.
The goal of this e-book is to help individuals like yourself identify profitable
car deals, implement proper negotiation tactics and develop the know how to
perform a professional vehicle inspection mitigating your risk for loss when
making a vehicle purchase as an investment.
I have spent tens of thousands of dollars and many years gaining a skill that
will always make me money whenever I want, wherever I want. I have went
through tons of cars. Losing money at first while I was going through “the
school of hard knocks” at scorching hot outside auctions learning how to
properly bid and buy used cars. Learning how to weed out the gems from the
garbage wasn't easy and it took a lot of time to learn. The formula that I've
stumbled across made it well worth it.
If you follow and apply this material you will see that it's truly a shortcut to
finding the golden nuggets that will put thousands of dollars of easy profits
into your palms.
What you have at your fingertips are YEARS of my success tactics
condensed into a powerful little book that will give you an instant
competitive edge over any rival that is thinking of buying and selling cars
and actually succeeding in doing it.
I suggest that you have at least $1,000 cash in capital to start. That initial
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$1,000 investment will also cover small costs of starting and setting up shop.
If you are in the market looking to buy & sell cars, buy a personal car or
maybe you are just looking to sell one of your own personal cars, this book
will help you save and gain the maximum amount in profits each and every
time you make a deal.
Knowing how to buy right and also having the right timing is the #1 rule
for success with any arbitrage method. It can either be cars, real estate,
gold and silver bullion, stocks or any investments that you wish to profit
from.
If you aren't capable of identifying good from bad car deals then you are
stuck at a loss of $1,000 or even up to $5,000 - $10,000 out of your pocket
with a junker that you don't know what to do with. With all of that said,
Maybe you might be lucky to recoup your initial investment.
You will have my 10 years plus experience, knowledge, secret tactics and
negotiation strategies that will propel you into the field of buying and selling
cars without the beginners slump. You can literally start from $500 - $1,000
then reinvest your profits into better deals that may give you a
higher return on investment (ROI) as time moves on.
I am not writing this book to exaggerate income claims saying how much
you will or can make. All income claims in this book are details of my
personal 'done deals' as well as some friends that have had extraordinary
results using these tactics. This book gives you a tactical strategic view on
how to make money with cars.
These powerful strategies are proven to work - if you follow the steps and
take action. Taking action is the most important step in personal
development and for achieving success. Nothing will ever happen without
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taking an Action Step. The best part is the fact that you are reading this book
You took ACTION!
If you saw the value and took action and became a member of my Video
Training Blueprint Series, you will have unlimited full access to my private
Training Video Modules in your members area.
You will have an insider view of how to find deals on the computer - using
this technology as one of your tools to successfully bring home the cash over
and over again. Here is a glimpse of the Exclusive Membership Site.
Here is a partial view of the (VTB) Video Training
Blueprint Course.
-Setting Up Shop – Creating On-Line Accounts and Getting Started
-How To Find Deals On-line Using The (PME) Tactic
-Negotiation Strategies – Buying and Selling - Calls and Tips
-Vehicle Inspection Series – How To Inspect Cars Yourself!
-Bonus Instant Profit Points – What To Do To Cars On ...Video
-AC Systems & The “HL” Tactic Series
-& Much More...To Hot To Reveal!
Each of these modules will have many detailed videos using real cars and
real live deals.
©F1AutoCashFormula.com | HowToBuyAndSellYourCars.com
My Story...
“How I Started Buying and Selling Cars”
It was the summer of 1995. I had just turned 13.
I started a newspaper route delivering newspapers
in my local neighborhood with my new Mongoose
21 Speed Mountain Bike ;0)
I was making a “measly” $120.00 a month
delivering papers everyday to about 300 homes daily.
A Picture Of Me & My Aunt.
I would deliver papers everyday after school and
Sunday mornings were a real bummer....
I had to wake up at 4:00am just to bundle each of the papers
up into a plastic bag so the rain wouldn't get to them.
It would rain hard some mornings.
That's the Hawaiian winters for you!
I know your thinking...
“winter in Hawaii?”... Well, our winters
are not as bad as the east coast but it does
rain hard in the early mornings..
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My Paper Job Lasted For 6 Months!
I finally got sick of it! WORKING for
pennies! Knowing that I was WORTH MORE.
Besides, who wants a boss anyway?
I think at that point in my life I discovered a
new word called “Entrepreneur”
I always wanted a moped (you know the
50cc scooters that people use to scoot
around town with that get like 50 mpg?).
One day in the local penny saver I saw one for sale.
A 1994 Honda Elite!
My Eyes Were Opened With JOY!
So, with my hard earned savings I managed
to take a look at it and actually buy it for
$500.00... at the time I think they
were selling for a little under $2,000
brand new.
I had bought it from a lady who
was moving back to her country
and she needed to sell it ASAP.
I ended up getting a really good deal!
It had a few scrapes and cracks on the
plastic panels but nothing crazy
that I couldn't easily fix.
At the time my father ran an auto body shop.
So by hanging around in that environment
I quickly learned how to fix just about anything.
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I wasn't painting with real
spray guns and car paint yet but I started using
Home Depot spray paint for my mopeds.
I would buy 2 – 3 cans of paint,
put on a mask and paint the plastic panels
under the house. I was working on the
moped from home in the garage because my
parents had been split up at the time and I wasn't
hanging around the shop much anymore.
I had fun riding it for a week or two
tuning the engine, cleaning the spark plugs,
taking the carburetor off, cleaning it, drilling holes
in the plastic air box and muffler so it would get
more air flow and eventually ...go faster.
It made a little difference, I think I
got an extra 4mph out of it. My neighbors didn't like
it from the looks that they were giving me.
It definitely sounded much louder though lol...
So, after my experiments of mechanical intrigue wore
off. I bought an ad in the same
local penny saver that I found the moped in.
Since I knew that they sold for $2,000 new
I wrote an ad that said...
1994 Honda Elite (1 Year Old)
Paid $2,000 New
For Sale $1,200
Call 888-555-5555
Three days later I get my first call...
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Turns out the guy really liked it. When he
came to see it, he offered me $900.00 Big Ones!!
on the spot...”Of Course...I took It!”
During those days..I didn't know how to counteroffer,
let alone negotiate. I was taken by an adult! lol,
oh well...
A $400.00 profit for a few hours of work fixing cracks
and a can of spray paint from Home Depot!
And at the same time getting “off” on the mechanical
coolness of tuning it – Needless to say, I was floored
by the easy money.
“That was like three months of earnings on my newspaper route!”
From that point on I started flipping mopeds like hot cakes.
Making as much as $1,500 in a single good month!
My average month was around a thousand dollars...yes,
a thousand dollars a month at 14 years old.
It made me happy for sure ;)
I got in the car game at age 15 - when I finally got my
drivers license. Then I went through many years of learning
how to properly buy and repair cars, and also learned some
painting techniques from around the body shop.
Today, in 2009, I am here to offer you ALL of my collected
experience and so called formula for making money with cars.
©F1AutoCashFormula.com | HowToBuyAndSellYourCars.com
By the way, I do not really consider myself a master at this at all, although I
joke about it sometimes when I talk about it saying “I've Mastered It”. But
what really happened was, a few of my friends thought I was doing really
good making a lot of money for a young kid and wanted to know what the
hell I was really doing. So, I showed them “the formula” and surprisingly
within a couple short weeks my friends started flipping their own deals and
turning big profits too!
The funny part was that they had no experience with cars at all. They never
had a father who owned a body shop or any mechanical “Know How”
whatsoever. That is when I had my first Ahaaa... moment.
I told myself maybe I can teach this to more people and help them make
some money...But because of my busy teen years, the idea quickly faded and
I didn't do anything. Finally I have written an e-book with the simple
formula that anybody can use to make money with cars. If my 70 year old
dad can do it *You Can Too!
This is not my whole story just a part of it. I don't want to bore you with my
life story here. Besides this is a book about making money with used cars.
There was a section in my life where I totally stopped the car thing and tried
to live a normal life working as a buss boy in a restaurant and going to
college full time. I simply have more fun doing what I want to do not what
people tell me to do. Ok, so lets get into it.
Below are a few pictures of when I started the Moped / Motorcycle
Business. This is me at 13 years old. I remember buying this 1991 YSR 50
for $1,300. Yes, that was a lot of money for me at the time but, like many of
us who want cool things - I was driven by emotion and had some help with
the cost from my mother (Thanks Mom!)
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1991 Yamaha YSR 50 Before.
Honda Elite 100cc Water Cooled.
1991 Yamaha YSR 50 After Paint.
Yamaha Razz that I resold.
I fixed this Yamaha YSR 50 up doing a frame off restoration and then
painted it with the best car paint. I sent the motor to Yamaha and had the
engine fully balanced and blueprinted. Two months later I had sold it for
$2,500 cash. I didn't profit much - but it was more of a learning experience
for me. I never really want to sell it but I needed the capital to keep moving
forward in the moped motorcycle business.
©F1AutoCashFormula.com | HowToBuyAndSellYourCars.com
Table Of Contents
●
●
●
Introduction
Legal Income Disclaimer, Disclaimer & Copyright
My Story
Chapter 1 - Market Research
●
●
●
●
On / Off-line Resources
Profit Margin Estimator Tactic (PME) introduction
How To Find Profitable Deals!
The Best Vehicles To Buy & Sell In This Economy
Chapter 2 - Salvaged Title Versus Clear Title
Chapter 3 - Auto Auctions
● Why to start small at first
● Costs of obtaining a dealers license
● Auction resources
Chapter 4 - The Major (4) Vehicle Inspection Checks
●
●
●
●
1. The Interior
2. The Exterior/Body
3. The Suspension
4. Mechanical/Electrical
Chapter 5 – The 3 Part Auto Rating Guide
Chapter 6 - (PME) Profit Margin Estimator In Examples
●
●
A simple tool that I use to gage the market
Never lose money
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Chapter 7 - Negotiation Tactics When Buying and Selling
●
●
●
●
●
●
Making Money On The Buy
Getting Paid On Your Terms
Phone Conversation Checklist
E-mails and Leaving Messages
Sellers, The Peoples Game
Buyers, The Peoples Game
Chapter 8 - Bonus Profits Revealed
●
●
●
Instant bonus profits
How $50 can instantly bank you hundreds and even thousands!
“The Headlight Tactic” (Put an Extra $300 in your pocket!)
Chapter 9 - Got a Deal...Now What?
● Analyze
● Calculate
● Get To Work!
Chapter 10 - Marketing To Sell (101)
● On, Off-Line Marketing.
● Writing Ads.
Chapter 11 – Tools You May Want To Consider Investing In
● Mechanic Tools
● Auto Body Tools
● Detailing Tools
Chapter 12 – Mechanical Car Pictures & Descriptions
● Sample – Bill Of Sale
©F1AutoCashFormula.com | HowToBuyAndSellYourCars.com
Chapter 1
Market Research
On/Off-line Resources
My number one market research method for you to get started when finding
deals is to properly learn how to keep your eyes open for opportunity. That
means looking in papers, looking on-line, and that means keeping your eyes
peeled on the streets too.
For on-line scanning Craigslist is one of my main sources for finding deals.
You must constantly scan Craigslist a minimum two times daily. It only
takes about 20 to 30 minutes each time to scout for deals. Simply go to http://
www.craigslist.com and create an account. You will need a free email like
Yahoo, Hotmail or G-Mail to open an account. You will also need to
provide Craigslist.com with a valid telephone number to verify your
account.
Craigslist has a top posting rule saying that you may not post your exact free
ad more than once every three days. How it works: when you post an ad on
CL, it will be posted in order received - so if 50 other car listings are posted
after your post - your ad will be buried 50 listings down and people will
need to scroll down to see your ad. This makes it unlikely that your ad will
be seen right away. Being too far down (like 2 or 3 days down) leaves you
at 500 – 1,000 postings down. The chances of your ad being seen gets much
lower.
To offset this you want to be able to get your ad on top everyday. You will
need to simply create 3 accounts on CL or write “totally new ads” in a whole
different format. I prefer to have 3 accounts and I will explain the whole
©F1AutoCashFormula.com | HowToBuyAndSellYourCars.com
process in chapter 10.
This method of finding and selling cars will work with any other on-line
classifieds that are popular in your State and City or Country.
Another way to find deals are newspapers, classified ads, penny savers or
any local ad magazines and on the streets.
Other on-line classifieds that you may use include:
http://www.backpage.com
http://www.ebay.com http://www.ebay.com
http://www.kijiji.com
http://www.gumtree.com
http://www.sell.com
http://www.ozfreeonline.com
http://www.onlineclassifieds.com
http://www.pennysaverusa.com
If you want to find more places to get cars simply use google and do
a search for auto classifieds.
Honestly... my friends and I only use Craigslist.com
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Simply go to Craigslist.com then click My Account and sign up.
This is what the sign in process looks like:
You can also post free ads without creating an account but you must
verify your post through a valid email address each time. It is up to
you if you want to create an account or not to post ads on CL.
©F1AutoCashFormula.com | HowToBuyAndSellYourCars.com
Simply follow instructions when signing up
It's easy...
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Ebay bidding
http://www.motors.ebay.com/
Ebay is another excellent source for finding deals. You can bid auction style
and sell auction style or have a “buy it now” offer which means that you sell
it for a set price. You can also have a “best offer” sale and see what the best
offer you can get is.
Ebay is great for selling in the States; unfortunately, in Hawaii, using Ebay
is not the best method. I am sure it can be a great resource for you people
living in the States.
If you are interested in buying or selling on ebay visit:
https://scgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?RegisterEnterInfo
Ebay has a extensive help section that will help you with tasks like setting
up an account and getting started to start a on-line auction.
©F1AutoCashFormula.com | HowToBuyAndSellYourCars.com
The “PME” Profit Margin Estimator Tactic:
Introduction
Here is an example of the PME tactic. First you will need to go to your local
bookstore and purchase a Kelly Blue Book, if you don't already have one.
Not the dealers version - but the original used car and truck consumer
version. http://www.Amazon.com is another great place to get yourself a
copy.
Here is a picture...It's only $9.95 and they come out with a new version
every six months. I use the same book for a year and
recalculate the estimated price subtracting a hundred or two off
the current value every year. Auto values depreciate a few
hundred dollars each year...No Big Deal.
Inside the book you will see that all of the autos are organized
alphabetically. Trucks and SUV's are located at the back of the book.
You will see Auto Values in this order:
Trade-In Value Fair & Good - Pvt-Party Good - Retail Excellent
The Retail Excellent is what a dealer may sell it for if the car is in excellent
condition.
The Trade-In value Fair & Good values will be your best friend. You want
to try to buy below the Trade-In Fair value. If not - then as low as possible
near that price range.
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Then you look over to the Pvt-Party Good Value to see what you can get
for it. Depending on the condition of the vehicle (if the car has LOW miles
and is in Excellent Condition), I will price the car between Pvt-Party Good
and the Retail Excellent Condition Value.
Most of the time I like to sell at a nice competitive attractive price to blow
the car out FAST! So I usually price them a few hundred dollars below the
Pvt-Party Good condition value. This is what you will want to do when
selling your cars.
Sometimes when you scoop the car very low you can blow it out in a day or
two by selling it for Trade-In Good condition...It all depends how FAST and
how much money you want to make.
Try not to get greedy and ask too much or you'll just be sitting on the car for
a while longer. A few friends that I taught use this method of selling high.
YES they might make more money per car but they end up sitting on it for
weeks at a time. I personally do not like this model. You will come to figure
your own method after learning this course. See what works for you.
The money is in the numbers. Car deals are abundant - They are
everywhere! I am happy at 1-2k profit per car sometimes less. We all need
to enjoy life too ... Can't let that pass us by right?
Example of the (PME) Tactic. As of April-June 2009 Bluebook.
I just picked up a 1999 Nissan Sentra GXE.
Look in your Kelly Blue Book under Nissan, you will see the year at the top
of the book. Once you get to the 1999 Nissan Sentra GXE model you will
see...
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1st. You want to look at the (Trade-In Fair) Value* so you will see it says
$1,675
2nd. Look to the right and view the (Retail Excellent Value) which is
$5,275
Again this is what a dealer might ask for the car if it were in excellent
condition. You never want to sell your car at this price unless you don't want
to sell the car. You could have a good chance if the car has really low miles
and looks like new. You can always test the market and just post an ad to see
what happens.
3rd. Take a look at the (Private Party Good Value) which is $3,450
You want to buy your cars below or near the trade in fair values.
Now you know the price points - where to start to look and where you can
sell at. 90% of the time I list my cars for sale BELOW the (Private Party
Good Value) even though the car is in EXCELLENT condition.
Back to the 1999 Nissan I just picked up. The owner was asking $2,500 for
it on Craigslist. I was the FIRST to call him, the FIRST to look at it and the
first to make the offer.
I managed to scoop it for $1,600 - cash on the spot. How and why was I able
to do that? Good question! I looked at the car and felt the seller out. He
really wanted to get rid of the car because of a recent new truck purchase
that he had made.
When negotiating a deal you can start a bid extra low because of the natural
bid bounce back that will occur OR have a GOOD reason why you will stick
at your initial offer. My initial offer was $1,600 cash. I knew that he would
make a come back of $1,700 or $1,800, and he did at $1,800...I gave him a
small smirk on my face ...like – an “I'm Not sure look” ...not a happy smirk
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but a Thinking Smirk!... You need to use your bluff sometimes...
Before looking at the car I had formulated a game plan of what to say when
we were in negotiation mode. I said to myself, “I will tell him that I am also
going to look at a 2000 Nissan GXE, A newer Nissan that was going for
$2,000...” $500.00 less than his Nissan and a year newer!
I made-up a competitor! He does not have a clue of what other cars you are
looking at so simply make one up! Just use my example.
What I was basically saying was “Look, I have $1,600 cash now. If you are
not interested than I will look at this other 2000 Nissan Sentra and the seller
is only asking $2,000”. He looked at his wife first then looked at me and
said ok... You got a deal!
DONE DEAL! He had the title with him and signed it off to me on the spot.
I mentioned that I was buying the car for my sister-in-law and asked if he
would mind leaving my name off the title so I would be able to transfer the
title directly to her name when she arrived town ...which was true.
Another way to bid...
You can bid extra low at first and get the price you really wanted in the first
place and play the game like that. Example, “Look I'll give you $1,400”...he
will bounce to $1,700 or $1,800 and you can say ok, I'll meet you in the
middle... how about $1,650? get the idea?
It is always best to have a game plan in your mind before you buy or sell a
car. It is the art of negotiation (Be Prepared To Win!)
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You will do this with almost every deal to create a deal. This is how the
profits add up. You will easily add up profits using this method and also by
applying the quick bonus spruce up tactics that I talk about later.
IMPORTANT TIPS...
Always try to be the FIRST to look at the car and the FIRST to make the
deal. Calculate your (PME) and do your market research. Look at the car and
see if you can make a profit that fits your personal method and budget.
See what the car needs. You might need to put a little elbow grease into it
and clean it or doing some minor body work or a little tune up. Maybe the
car really doesn't need anything but a light wash and a detail – maximizing
your profits needn't take much time or a huge investment.
Work on your negotiating game plan. The more you do it, the better
you'll get.
How To Find Profitable Deals
I like to buy at the (Fair trade-in value) or as low as possible when I buying
from private personal sellers. When buying at auctions I like to try start a bid
at 50% or lower of the (Fair Trade-in value) keep in mind costs for repairs
such as body work or mechanical work etc. It will cost you more out of
pocket if you plan to have this work subbed out. It will also be to your
benefit to form and maintain respectful relationships with specialized
mechanics and auto body men as you start to buy and sell more vehicles.
Using this method of bidding and combining it with searching for deals on
the computer and applying savvy negotiating strategies will skyrocket your
chances for success. It is a very simple model of automotive arbitrage.
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The Best Vehicles To Buy & Sell In This Economy
When buying a car to resell make sure that it's a In Demand vehicle.
Nowadays, light cars & trucks, and small SUV type vehicles move fast especially when fuel prices are up.
I have had good luck with Japanese and Korean sedans and also many types
of light trucks vans and SUV'S. Which are the typical 4 cylinder good on gas
transportation cars. A few good examples in order are Toyota, Honda,
Nissan, Subaru, Suzuki, Mazda, Hyundai, Kia, VW, BMW, Mercedes and
Volvo. Then come the American trucks and vans Chevy, Dodge, Ford and
Pontiac being the most popular. Asian trucks and vans do very well also. I
try to stick with the Asian ones the most. But you will find super Chevy, and
Ford deals out there too! Don't pass them up if you see you can make a good
profit.
As for the German cars, many people like the 3 series BMW and the C class
Mercedes Benz. The VW Jetta and Golf do very well also. The 92-98 BMW
3 series is a very popular model and can be purchased relatively cheap.
Another popular one is the Mercedes C 230, 240, 280 W202 body style.
Please keep in mind that these are the cars that are very popular in my City
and State. It will vary in your's, maybe you're in a town that has a rush for
big trucks or American cars. The (PME) Tactic will help guide you on your
profit margin.
Remember, the more luxury the vehicle the (Higher Your Target Market will
be). This means you will be asking more for your cars. Most times the
higher the vehicle price, the longer it will take for you to sell. But it will sell
for the right price, anything sells for the right price!
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The art of flipping quickly (my favorite money making method) is to
stay below the $5,900 end sale price range.
You will appeal to the masses that are looking for a great little dependable
economical light car or truck. The best part is that these buyers are all over.
Make sure you are selling above the year 2000 vehicles if you are asking in
these higher ranges.
You will flip more cars more quickly which equals more money Besides,
this is the end goal right? (To make fast money).
This means you want to try to buy below $1,000 - $3,000 but by all means if
you want to invest in higher vehicles which may make you higher profits go
ahead. I have had my best flips buying and selling cars at this lower price
range.
Try to stay above 1996 cars unless you find a deal for a few hundred bucks
and you know you can make a quick $500 or a $1,000 on it. Just use the
(PME) for all years - IT WORKS!
If you are selling from years 1996 – 1999 Try not to sell them over $3,000 $4,000 and from the years 2000 – 2002 Try and sell them below the $5,995
range. If you have really new cars like the affordable Toyota Echo or the
New Hyundai or Kia's Try and sell them at a competitive price. They are
cheap cars and you can actually buy 2002 – 2004 for a few thousand dollars.
Again it all depends on the (PME) just do your research.
The reason why I like to say to stay above the year 1996 is that people like
newer cars. Selling older cars are fine but when you have something in the
year 2000 and up range consumers love it and they sell much faster.
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Think about it - 90's is kind of old...2000 is in. Just like the 80's...would you
buy an 80's car now? I don't think so...
Now, when it comes to classics and collectibles thats another genre. I have
had my share of classics cars such as a 1966 Pontiac GTO, 1967 RS
Camaro, 1957 Chevy, 1955 Chevy and a 1969 Buick Riviera. All beautiful
cars - perhaps this is when America really built cars!
There is nothing like American muscle cars!
This 66 GTO that I had was purchased for $3,000. I painted it tangerine
orange and sold it for $8,500 only three weeks later - profiting an
outstanding $5,000 after subtracting paint materials.
1966 Pontiac GTO Painted Tangerine Orange With Silver Metal Flake
Bodywork And Paint Finished On The 66 Pontiac GTO. Sold For $8.5k
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Below is a 1967 Camaro. It was bought for $1,800. It didn't even have a
front end on it. At that time of my life I LOVED working on Classics. I
invested about $10,000 in it and sold it a year later for $19,000 it was more
of a learning experience than a motive to make money. The money was not
worth the time and effort that I put in the car. Many weekends and nights
were put in over 9 months for a complete restoration. New everything - from
the engine, suspension and interior. The only thing I worked on that wasn't
completely new was the body. Here are a few before and after pictures of the
Camaro.
When buying cars to flip, do your market research. Popular cars in my state
may not be as popular in yours. See what everyone is driving. What do your
friends and family drive? Chances are if they all drive trucks then you know
you need to look out for truck deals! You may be living in the Colorado
Rockies filled with truck fanatics. Cater to the trend and what the masses are
looking for. This way you will always make money. Simply search for the
car you plan to sell or are selling on the on-line classified and compare
prices.
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Some cars may be too competitive to buy and sell. Out of all the cars I sell
Honda's are only about 20% of my flips - they are highly priced in
advertisements and sell very quickly! I don't find many Honda deals but
when I do they usually sell within the first day of my ad posting and I make
very good money with them.
Here are a few cool pictures of my recent trip to Japan of a few mini cars
that we don't really see much.
This is a Suzuki Twin. 3 cyl 0.7l. Cold ac, no power windows...lol
A Daihatsu
Honda Life
I just thought you'd like to see some cool small cars from Japan.
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Chapter 2
Salvage Title Verses Clear Title
A salvage title is often issued by states when a vehicle is damaged by
accident, flooding or theft and the cost to repair is so significant that many
times it exceeds the market value of the vehicle.
This may be associated with an insurance company declaring a vehicle a
total loss. Sometimes these severely damaged vehicles are rebuilt, and issued
a rebuilt or reconstructed title. In many states this requires a inspection from
a certified salvage repair shop that issues a rebuilt certificate so you can get
it registered.
A problem often occurs when a salvaged and rebuilt vehicle is sold in
another state. Sometimes these so called “salvaged titles” do not transfer to
other states and the title automatically becomes a "clean title"
Which leads to unscrupulous sellers increasing their profit margin by using
this method of "cleaning" the titles and fooling naive car buyers to purchase
their so called “clean tittle”car. From what I know, the only way to really
find out about a vehicles salvage history on paper is to acquire a CarFax
from CarFax.com or AutoCheck.com.
A clear title means that it is free of liens and legal questions as to ownership
of the property which is also a requirement for the sale of real estate. This
can also be called a “just” title or simply “free and clear”.
Here are a few pictures of what a Salvaged Title may look like and a
screen shot of Carfax.com and Autocheck.com if you want to do a check
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on a car.
Here's where you want to get your carfax reports from.
Carfax.com
Autocheck.com
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Chapter 3
Auto Auction's & Dealers Information
Now, on to why I stay away from auto auctions and why I say to start small
from home at first if you are a beginner. If you are not a beginner then
auctions are a great place to get deals in bulk. Here are a few pros when
starting small from home.
You will have very low to no overhead costs when you start from home.
You can take your time and complete one successful flip, learn the game
slowly, start making maybe an extra $1-2k a month just by flipping one car a
month.
As you start gaining experience at finding deals and learning how to buy
right. You will be getting better at you're game and learning the negotiation
tactics. Then you can try to flip two or three cars a month and maybe move
to one or two cars a week while profiting 1-2k each. It is not a hard or far out
goal to achieve at all.
This is how the most successful ethical dealers become dealers, they start
small from home at first. They learn how to buy good cars and learn
negotiating.
I have many friends that are auto dealers and that's how they did it.
Unfortunately because of this new world and new economy, one of them is
out of business working for another car dealer because his huge inventory
and high overhead costs just ate him up. The other is struggling to just pay
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the rent and to keep the doors open.
This is why you have the advantage of starting small from home and
make a killing!
The reason why I think auctions are not your best bet now is that you will
have many costly fees of being a member. Not only will you incur costly
auction membership fees, but most auctions will hit you with buyer fees,
pull-out fees and taxes which can add up to 10% – 15% of the bid price.
Again, there are many newbies hitting this market thinking that they know
how to properly buy and sell cars, but in reality they don't know how to
properly buy right.
They get into these auto auctions all hyped up without a clue in mind they
bid and bid the prices up cutting everybody's margin down to almost
nothing! This is the cut throat style of buying cars from public auto auctions.
Back in 2001 - 2004 you were able to buy many cars for hundreds of dollars
each and you had a realistic $1,500 – $5,000 profit margin per vehicle. Back
when there was no competition.
I am talking about buying a 1996-1997 Mazda Miata for $300 - $500 and
with just a wash and quick detail it brought you in a quick $3,000 and the
best part was that you only had a few people bidding for each car. Maybe 2
or 3 people and you knew them! You would hook each other up and just
give and take.
Now you have over 150 people at these auctions, not to mention the on-line
bidding services that they have incorporated into the system bringing in
bidders across the whole nation that can bid on-line. This means that you are
not only competing with local bidders but you are competing with bidders
across the whole nation.
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When buying cars at auctions (if you are not a dealer) the vehicle must go
into your name first before you can actually sell it. That's another negative
aspect to auction-buying. They limit your inspection time per car and you
can't personally check the car out or look at the engine before buying the
vehicle. This is for “IAAI” Auctions in Hawaii.
The only time you can look at the car is when the drive through is active.
Then you have 15 – 25 people scrambling all over the car driving the bid
prices up and you don't really know what you are getting. You start bidding
on forced hype. Never fall for forced hype bidding. Always keep your cool.
Get good at knowing what you can get for the car and figuring out how
much is needed to get it ready for sale before or while you are bidding.
Once you get that down the world is you're oyster.
“This has been true to the auctions that I have been involved with.
Other auctions may have fewer fees and fewer people bidding on cars.
Again, just because I don't buy cars from auctions like I used to doesn't
mean they are not a excellent source for getting super steals, just make
sure you know what you are bidding on and always refer to the (PME).”
Auction Bidding
Say the (Trade-In Fair Value) on a 2002 Honda Accord DX sedan is
$6,000- depending on the condition of the car and how much work is needed
I would start a bid at around $1,700 and also keeping in mind that the Dealer
excellent condition value is $11,000 and Private Party Good is at $8,500
I know that I can very easily blow out the car for a competitive price at
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around $7,000 – 7,500 fast, making a few thousand dollars of profit
instantly.
Try to calculate selling most of your cars in the range of $300 – $1,000
below the (Pvt-Party Good Value) and you should be able to move it pretty
fast.
The same bidding would apply when buying from a private party...I like to
try and get the car for $200 minimal below the (Fair Trade-In value).
When using proper negotiating tactics you can easily drop the price with
novice private party sellers.
I have gotten used cars from Pvt-Party sellers for 50% below the fair trade-in
value...That's when you know you'll have instant profit when buying.
If unable to get it below (Fair Trade-In Value), just go back to the (PME)
tactic and see what your profit margin is. If you see that you can still make
money and the car is a hot seller, go for it.
Dealership License
Here are a few references for auto auctions and dealers licenses if you want
to buy at auctions or become a dealer.
AUTO AUCTIONS
http://www.iaai.com
http://www.manheim.com
If you are looking for auto dealership license information please read the
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Bonus Materials that were given to you.
BONUS MATERIALS FOR DEALERS
-Auto Dealer Licensing Requirements In All 50 States.
-How To Get an Auto Dealer License.
IAAI.com
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Manheim.com
This is a screen shot of Manheim Auto
Auctions.
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Chapter 4
The Major (4) Vehicle Inspection Checks
#1 The Interior Inspection
When performing an interior inspection for a car it's basically pretty simple.
First you want to take an overall look at the upholstery. Make sure it is not
too dirty that a detail can't help. Most car interiors that you look at may need
a detail but this is not a biggie. I am sure that you won't buy a car that needs
the whole interior changed because it's so bad that you can't even sit or smell
inside of the car.
This is where your money will add up. You can really turn a car around with
a nice interior and exterior detail. I have made easy money just giving a car a
detail - I'm talking an easy $1,000 - $1, 500 profit just on good buying and a
detail.
You can sub out interior and exterior detailing which costs from $50 - $150
I have a personal connection where they do my interior or exterior details for
$40 in or out and $75 for a complete detail. When you have a good
relationship with other people in the field - mechanics, auto body men and
detail shops, suddenly business becomes a lot easier, and you get better
deals.
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Check All Mechanical Buttons and Switches!
Check the power windows, locks, cigarette lighter, power mirrors, wiper
switches, dome lights..etc. You may want to start the car and check for the
engine light (making sure it doesn't stay on) If it does then you can use that
as a negotiating point. Usually, the oxygen sensor fails on cars with over
60,000 miles and that is what usually makes the check engine light appear.
Again, the check engine light is a MAJOR negotiating plus for you, but
please do your due diligence on the engine. Check all mechanical functions.
If you are really serious about the car then you might want a mechanic to
take a look at the engine code for you if you are not savvy and confident yet.
You can always buy the OBD2 auto code tester at most automotive parts
shops for around $200.00. Then you will be able to check the codes yourself
anytime.
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Here are a few tips on sensors.
Be sure to ask why the engine light is on and if he or she had any
diagnosis from a mechanic.
The oxygen sensor is a small sensor that is screwed on the the exhaust
manifold or on the catalytic converter. The oxygen sensor makes sure the
engine is getting proper fuel and air mixture ratio to the engine. Usually
when the oxygen sensor fails the car might run too rich or too lean...causing
the check engine light to appear. Not a big issue, but something to fix and
replace.
It can cost about $150.00 - $350.00 for repairs depending on the type of
vehicle. This is a very common check engine problem...and a very good
reason to get a better deal.
Sometimes when you reset the computer, the engine light will turn off for a
few days or months. To reset the computer on most cars just disconnect the
car battery.
First by removing the ground cable the (BLACK) and then the power cable
the (RED) get in the car turn lights on and step on the brakes a few times.
This will drain the power from the system. Let it sit for 10 min then connect
the power cable first (RED) then the ground cable (BLACK) then start the
car and see if the check engine is gone.
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WARNING!!!
Be sure to read the owner's manual and/or buy a Haynes or Chilton's Auto
manual before performing this step. I will take no responsibility for any
personal injury or safety hazards. Read Disclaimer section of this book.
You want to check all lights, brake, tail, signal and reverse lights; if some
are not working you can use that fact as a negotiating point...bulbs are very
easy to replace and install.
Make sure all doors open from inside and out. Sometimes latches and door
locks are broken and the seller will not tell you. Usually they won't tell you
unless you ask them! Unless they are very honest which occurs on occasion.
Check the seat belts, adjust seats etc... sometimes you may forget perform
the following and go home with a small issue..a recent car that I bought had
an issue with the passenger seat not locking in position, the seller never told
me about it and it was my fault for not checking. You can also check to see
if the AC/Heater works too. Make sure the car is running and the AC switch
is on.
#2 Exterior/Body/Frame Inspection
The first thing you want to do is look at the body. Scan to see if there are any
major dents, sun damage, peeling paint or scuffed up bumpers. Compare
panels and see if you have color matching differences which means panels
were painted. Check around all moldings for paint on them.
Just use light as a reflection and glance the body looking down the side of
the car from one end. Make sure to use the sunlight or a garage light as a
tool to check for ripples or dents. Most of the time, this is when you can tell
if the car has been painted or repaired if the auto body man didn't do a good
job.
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If peeling paint is evident on top of the car like the hood, trunk, roof and top
of fenders (which is very common) use that as a negotiating point. Say that
you want to get it painted and you know that it will cost around $1,000 $1,500 and try to bring the price down. Once you get the price down keep in
mind what you plan to do, like getting it painted or not.
I will get deeper into negotiating later. I can't stress enough about the
importance of pointing out every little flaw to the seller to get a better
bargain.
Open the hood and trunk, check for rust near weatherstrip rails. Where I live,
we can have major rust problems.
Open the hood and inspect the “radiator support” - thats the metal frame
that holds the radiator in place. Make sure it is not bent or damaged. Inspect
insides of fenders and under the hood. Sometimes you can see that the car
has been painted. You'll see some “over spray” which means that you will
see paint on plastic parts of engine or on the inner fender wells that were not
taped off properly by the masker - leaving a rough paint over spray feel and
look.
Be sure to bring that to the seller's attention by asking them what happened
and why was it painted, or ask if it has been painted. Make sure to keep eye
contact when asking sellers questions. You want to be sure that the seller is
not lying to you. You can usually tell if someone is lying to you - we all
have a innate sense for telling if you are being lied to or not.
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Look in the trunk. You will want to pull up the carpet and check for the
spare tire. Make sure that you don't see any crinkle in the trunk pan or the
floor of the trunk. You may spot damage or water buildup, meaning that
there is a hole causing a leak from improper body repair or damage/rust
around weatherstripping rails. You will often smell mildew in a trunk if
there is a leak. Here is a pic of a trunk pan. Inspect for wrinkles and water
and smell for mold.
Check all door hinges making sure that they are not loose or rusty - 95% of
the time they are fine. Remember, only do this quick inspection if you are
interested in buying the vehicle. Make sure hood,door and trunk latches from
inside also work correctly.
#3 The Suspension & Braking System
When checking the suspension system you want to walk around the outside
of the car or truck and push down on each of the four corners a few times. If
the car bounces more than 2-3 times the shocks need replacing.
A good shock or strut will absorb any bounce, firming up after the 1st - 1.5
bounce. You can also just take a test drive and if you know what you are
feeling for you can easily tell if the shocks are good or not.
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The fastest way of checking the shocks is to take a test drive. Just remember
too bouncy is no good, it will feel like riding in a boat.
Usually a soft bouncy ride means you need new struts or shocks. A stiff hard
bouncy ride could mean that the owner has lowered the vehicle by cutting
the springs or installing performance racing springs. In that case you will
want to ask the owner if he has tampered with the suspension system. If so,
ask if the original springs are available or ask if the originals had been cut or
not.
TIP:
People like to buy untampered cars, unmolested stock cars. If you are in the
young kid race niche then you can sell lowered Honda's or Toyota's with big
exhaust systems and big bulky body kits. That will be no problem if your in
that hungry market but I do recommend sticking with stock cars.
I am teaching how you can make money with the mass market. You have
many more people looking for stock cars than modified cars. People like to
modify or customize their own cars.
Once I had bought a 2005 Pontiac Vibe at an auction that was a salvage title
theft recovery. The vehicle was stolen and tampered with. The thieves had
completely removed the springs dropping the car a good four inches. I do
not know what went through their minds when performing such a stupid
act ...but they also spray painted the car windows inside with flat black spray
paint to make it look like dark tint. I had to use a razor blade to clean the
paint from the glass inside.
I ordered a set of after market springs which cost me $250. I paid a helper
$200 to sand and tape up the car so I could give it a coat of fresh paint.
2005 Pontiac Vibe. Before and After Paint.
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TIP:
If you get a car that has been modified try to restore it to the stock condition
without putting in much money as possible. If you do something like the
Pontiac Vibe that I did above you can make a hefty profit. I don't fully
remember the exact numbers but I know I made about $6,000 profit on that
car investing about $750 for help and all materials.
I do not recommend doing too much to restore a car such as taking off body
kits and changing exhaust systems or changing full suspension systems. It's
too much work and is not worth the hassle.
If you have a car for sale with a leaky exhaust or a loud after market type
exhaust and you really don't want to bother messing with it you can simply
tell the buyer “Exhaust systems are very affordable to change You can have
a stock muffler put on for about $150 - $200 I've checked”
Simple things like taking out a huge stereo system or lifting the car up again
with minimal investment is what I mostly do. If I end up buying a car like
this. Some cars might have coilover springs, where all you need to do is
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make a few adjustments by hand to raise the car up to stock height.
Checking The Suspension While Test Driving
You want to make sure the seller is not distracting you when doing
this. Turn the radio off, roll the windows down and MOST
IMPORTANTLY, don't let the seller distract you. I get sellers that try
to hide vehicle noises by constantly talking to you, here's a classic
one that some sellers do - keeping the windows up and AC on and
talking about their life story. Just make sure that you are aware of this
and put a stop to it when you notice it. Don't be afraid to really test
the car out. Step on the gas and check it out!
Step 1. With the car running in park, check the steering - turning from left to
right, if wheel shudders or squeaks when turning, you should know that you
may be low on power steering fluid, or you may have a problem with the
power steering pump and or rack-in-pinion. *Check belts for proper
tightness and check for leaks, usually a reddish fluid would appear if you
have a leak in your powers teering system.
Drive the vehicle around and just get comfortable with it. Feel like it is your
own car. Feel the braking, steering and handling, when on a main road check
for alignment. See if the steering wheel is centered and if the car is pulling to
one specific side or not. If you do notice a slight pull in direction check tire
inflation and tire ware after exiting the vehicle.
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When tire pressure is low the car will pull to that low side causing improper
alignment. You also want to check the tire ware on the tires. If you see
heavy ware on the inside or outer side tread of the tire you know that there
may be a more serious alignment problem that you want to look into.
As you can see tire is worn inside. This could be because of improper
camber alignment or because of lowering of the vehicle.
This is when you start to question the seller for accident history. It may also
be because of simple lowering modifications, worn joint, a tie-rod or a bad
lower ball joint, miss aligned camber and or toe alignments.
You may slightly peek your head under the car and check for control arm or
spindle damage. 85% of the cars that I look at never have these problems but
it is good to be aware of what may come up. Just make sure the car was not
in an accident. Just because the car title is clean does not mean that it was
never in an accident. By doing proper inspections you will be able to see if
the car was in a wreck or not.
I have some pictures and descriptions of car parts at the end of this book to
help you find your way around the car.
The Braking System
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When checking the braking system take the car for a road test. Listen for
noises when driving. If you hear a light scraping noise without stepping on
the brakes they may be worn down and touching the “I Need Brakes” safety
noise metal thing that are manufactured on the brake pads. they will make a
squeaky sound when the pads are running low. This happens when brakes
are worn down to a certain point - they will scrape against the rotor, giving
you a nice squeaky noise that says “change me”.
Feel the brake pedal with your foot when slowing to a stop. Is it a low
pedal? Do you feel grinding in the pedal? If you do. That means that you
have went through your brake pads and are now feeling the vibration from
the brake pad's rivets that are grinding on to your rotor.
This means that not only do you need to change your brake pads but you
will need to resurface your rotors or maybe just get new ones. If your brakes
are firm and have plenty of meat left you will have a high pedal and feel the
car come to a good tight stop not pulling toward any one side.
If the vehicle Pulls to a specific side when braking it could mean that you are
down on pads on that specific side. When changing brakes I recommend to
always to replace the pair together especially on the fronts. Never just put
new pads on one specific side of the car. 60-70% of your braking power
comes from your front wheels.
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Here are some pictures of brakes, and rotors:
First you'll see really bad worn rotors. The deep gouge is caused by broken
pieces and or rivets from your brake pads grinding to a stop.
The second picture is a cracked rotor caused by severe heating that causes
warping and cracking. Finally the last picture is a new set of rotors. They
should not be shiny but look scuffed looking. The brake pads will have a
nice stopping surface when the rotors are scuffed like this which is totally
normal. When rotors become very shiny they will tend to squeak when
stopping. You might want to have them resurfaced or replaced for maximum
performance.
In the first picture you will see the difference of a good pad and a new pad.
You will also see the gold color metal guide that will start to hit your rotors
when the brake pads start to get low. The last picture on the right are very
bad worn pads that need to be replaced with a new pair. If you can get your
fingertips around the rim and feel the rotor for gouges you can have a better
idea of the condition of your rotors.
#4 Mechanical & Electrical Inspection
Engine Oils
You want to open the hood and check for oil and fluid leaks. Look around
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the valve cover gasket, power steering fluid, & brake fluid reservoirs. There
may be a natural amount of dampness which is completely normal, just look
out for heavy wetting. If you do find an area that has fresh oil dampness
inspect area throughly and see where the oil is leaking from. When checking
the engine oil make sure that the oil is not a milky color. Milky oil means
that you may have a internal water leak in your engine, caused by a blown
head gasket or a cracked head. If you keep running an engine with these
symptoms you could be in for a surprise of the engine overheating and or
ceasing up on you. Here is a picture of milky engine oil, a bad sign.
Check transmission oil. Make sure the oil isn't black. Transmission oil is
usually a red color, the same fluid color as most power steering systems. In
fact most cars use the same oils for the power steering and transmission
systems. Unlike checking the engine oil on a car. The car must be running
on level ground to check the transmission fluid levels.
Just make sure the oils are clean and don't have a bad burnt smell. Black
engine oil is not a great sign but it really means that the owner hasn't really
cared for the engine much. This black oil will cause low power and maybe a
slight noise in the engine. A big cure for this is a fresh oil change. You will
feel and hear a night and day difference when changing the oil in a car like
this.
Here's a story... I once bought a 99 Acura CL. When taking it for a test drive
it was very muggy on power. It wouldn't move when you stepped on the
gas ...well it moved but very sluggish. I knew something was wrong, but
something simple. Another strange thing was when I stepped on the gas
white smoke poured out of the exhaust when I was looking through the rear
view mirror.
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When I checked the oil after taking it for a test drive I noticed that the oil
level was strangely very high. When I was in negotiating mode with the
seller I said “You know I am taking a big chance with this car” The engine is
shot. The piston rings are bad and I may end up needing a new motor for this
car. “It's smoking like crazy!” because of that, I was able to get the car for
only $500.00.
I went home and drained the oil. It had over 12 Quarts of oil in it! Be
reminded that this 4 cylinder engine only calls for about 4.5 Quarts of oil.
The engine was drowning in itself. That was the reason for the smoking and
sluggish acceleration. I added new oil to it and it ran like a champ!
I sold it 3 days later for $4,200 and mind you, the car was clean in and out.
All I did was drain the oil and add new oil to the proper level and sold it.
Engine Detailing
All cars have some type of small dampening or leaking on the engine. A
simple engine detail will make under the hood look like new! For a cleaning
agent I recommend Oil Eater. They sell it at Sam's Club, Costco & Walmart.
It is an all purpose degreaser agent.
Oil Eater
Simply water it down for household use or use it straight for engines. I will
show you in video how to do this step if you also got the Video Training
Course: [F1 AutoCashFORMULA Home Study Course] The site:
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http://www.HowToBuyandSellYourCars.com
http://www.F1AutoCashFormula.com
If you can peek your head under the car and look for wet spots or dripping, it
could be the usual is a leaky valve cover gasket that will drip down and
leave a oil trace on the bottom of the oil pan.
This is a minor fix which requires a simple 10 mm socket or a screwdriver to
take off the valve cover and replace the gasket. Costs range from less than
$40 depending on the vehicle and if you decide to tackle it yourself.
A mechanic would charge you about $75 - $100. NOTE these are quotes for
four cylinder engines, not six or eight cylinders. I know that some valve
cover jobs on bigger engines are much more work and can cost and take a
little more time replacing the gasket.
Reminder:
Make sure the oil on dipstick is properly in line with low and high mark on
dipstick, make sure oil is not a sludgy or milky in color or texture meaning
that there is water in the oil. Also known as the “Blown head gasket!” some
repairs may be simple as changing the head gasket. Some engines may need
extensive engine overhauling and head resurfacing to properly run right.
Be aware and well informed that if purchasing a blown head gasket car you
may be looking at $300-$1,500 in repairs unless you have connections with
mechanics. Make sure to stay within your budget. Keep in mind the (PME)
Profit Margin Estimator. You don't want to invest too much money in a car
if it will end up taking away from your end profit goals. Also look in
radiator and check for oil floating in water. Another sign of an internal leak.
Noises In Engine, A Cheap Noise VS an Expensive Noise
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-How To Tell The Difference
If you hear a high pitched clicking noise which revs up in speed with engine
acceleration It may be sticky valve's or lifters Which can be cured simply
with an oil change and some oil thickening additive. I recommend using
STP. When inspecting a car with a light ticking noise check the oil. If you
see that the oil is very black you know the oil hasn't been changed in a
while, most likely that is why you hear the noise.
Do not say to the seller “ohh you need an oil change thats why your engine
is making that noise” That is a NO NO ...You want to make a big deal about
the noise and weave in to the conversation that you are taking a risk in
buying the car. This why you can low ball your offer on the car to get it as
less as possible.
I bought a 99 Kia Sportage once for $400 the guy said it was running funny
with no power whatsoever. I went to go look at It, by the way ...he was
asking $1,000 for it. When I started it up I noticed a “miss” a miss means
that the engine is not firing in all cylinders which gives you a lumpy idle and
rough acceleration with no power. Usually a faulted spark plug or a blown
head gasket. But there was no water in the oil, a good sign! If it was a blown
head gasket or a major problem you would have water in the oil or oil in the
water.
I offered him $400 cash and during negotiating I told him “Look, I am
taking a chance here, I hope it is not a major problem like a cracked head, or
a jumped timing belt”. I made the problem seem worse than it was. He took
the money in a snap!
I had it towed with AAA. I recommend getting AAA they are a very
affordable road side assistance program costing about $120.00 a year. You
get many services including 5 free tows a year and you can also add a family
member for an additional $30 a year getting another 5 free tows. That's the
plan I personally have, which gives me 10 tows a year. That is excellent
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considering that one tow can cost at least $100.00.
Loud Engine Noises
When you hear any loud noises coming from an engine (knocking) and
when you rev the engine the noise gets louder - you know that you have
some serious issues. You may want to step away from the deal unless you
know that you can steal the car and have the motor replaced very cheaply.
Example:
I recently bought a 2002 Toyota Camry SE. 87k miles very nice car but the
only problem was the engine was bad. The seller was asking $1,500 obo Or
Best Offer (OBO) - I managed to scoop the car for $1000 cash.
TIP:
You want to be sure to be the first caller and the last caller when scooping
the most profitable deals, anyway I was able to get a engine from a junkyard
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for $1500 it was out of a 2006 Toyota Scion with only 23,000 miles on it!
At that point I was in the car $2,500 without my time and labor. It took me
about a day and a half to (r&r) the motor remove and replace the engine. I
did it at home in my garage.
The bluebook of the 02 Toyota Camry was about $8,500 in good condition I
listed it for $7,500 or best offer and got $7,250 cash a week later for a total
profit of $4,750 in eight days with two days worth of work invested. Wow!
Again, if you don't have the know-how to fix your own cars just simply
make connections with mechanics and auto body repairman around your
neighborhood and tell them that you may have some business for them in the
future. Tell them that you work on cars and sometimes you like to sub out
work.
You can usually have an engine replaced for about $500-$700 (again
depending on the vehicle like Toyota's, Honda's and Mazda's)- mostly any
four cylinder Asian cars are usually very affordable to repair.
American cars are very affordable too, but not very dependable, in the eyes
of the masses. What do you think - do Asian cars have a good stereotype of
dependability?
Your profit margin will be smaller if you sub out work, but you can still
make hefty commissions.
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Air Conditioning Systems
I would say about 30-40% of the cars I deal with have A/C problems
sometimes (if you're lucky) all it will need is a simple can of freon. You can
buy these cans of AC charge at any local auto parts store.
Sometimes the problem may be more expensive such as a seized AC clutch,
a bad AC compressor, bad evaporator or a dirty receiver drier (which is the
AC filtering system). If you are unfamiliar with AC systems you can take it
to a local air-conditioning specialists to have it looked at.
Yes, repairing AC system can be expensive and you may want to stay away
from having those repairs done and just selling the car with no A/C saying
that you have no idea what's wrong but it might just need a simple A/C
recharge. People will usually think it's something simple. Give them a small
discount to entice the purchase and make the sale!
Buying a can of freon and charging the system is well worth a try. I have had
many cars that I have fixed just buy adding a can of freon to the car. Just
make sure the system is not overcharged the usual low side reading is 45 –
55 psi and 225 – 255 psi on the high side. They also have cheap gages that
you can buy and they hook up very easily.
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I will also go over charging an AC system in the Video Training Formula
section step-by-step.
Exhaust systems
Some vehicles may have exhaust leaks coming from the exhaust manifold
which are the pipes that come out of the motor - very rare. For finding holes
in the muffler or exhaust pipes you may want to listen to the exhaust system
while revving the engine up.
When checking the car you will most likely hear a “putting” noise out of the
exhaust/exhaust pipes. Jack up vehicle supported using jack stands with the
car running and inspect for leaks.
Any auto parts store usually sells exhaust tape which is a metal tape that you
can use to cover holes. This is a quick fix for muffler systems but I very
rarely see this problem. In fact I haven't had to do this in years.
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Small Under The Hood Fixes That You May
Need To Do On a Vehicle For Quick Profits...
-Check or replace spark plug/Wires
-Check or replace air filter
-Check or perform an oil change
-Degrease and Clean Engine
-Check or flush radiator/add new anti-freeze (coolant)
-Clean battery terminals
-Degreasing Engine - make sure to cover distributor cap*
or any electrical connections with a plastic bag, usually not a problem if
light water hits them but try not to get electrical components soaking wet.
Make sure to start the car up as soon as you are finished washing engine.
Close hood and let engine run for 10 minutes and let the heat from the
engine steam off the water.
If these quick fixes are too technical for you just sub it out. Make sure you
have a good relationship with a mechanic to get good prices on repairs.
If you want to do it yourself I suggest to pick up a Chilton's or a Haynes
repair manual at your local auto parts store. They are available for most cars
and trucks. For special manuals check ebay.com or google.com you will find
everything you need on-line.
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I will also be adding requested videos on these “quick fixes” in the
Video Training Blueprint section of the members area.
Chapter 5
The Three Part Auto Rating Guide
I Like To View A Car From Three Main Points...
-The Exterior
-The Engine
-The Interior
If two of three are good and one needs minor repairs you got a deal or even
better yet, if you get a car that had no issues and all you need to do is wash it
that's a SCORE! Anyway, here are the example's
Example #1: Needs Exterior work.
Say you're looking at a 2002 Subaru WRX.
The interior is clean the engine is excellent with only 67,000 miles on it,
but the body has a few dents, or it may need a panel or two painted. Then
you'll want to look at the dents as cost per panel.
There are seven major body panels on a car.
The Hood, The Fenders, Quarter Panels, Doors, Trunk, Bumper Covers
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and the Roof.
I do most of my own paint repairs but you may want to look at it like this.
For each panel that has a major dent that needs body work and paint. You
are looking at roughly $300 - $400 US. For paint repairs per panel. Use that
as a negotiating strategy when making a deal. This price is actually a high
quality price. You can get them painted cheaper by shopping around.
Now, when I say major damage I mean pushed in 3 to 5 inches deep and
maybe a foot long.
Minor coin size dings and dents are common and usually don't really turn
people off, it is just normal wear and tear but, painting panels with small
dings are less costly than a panel with major work needed.
You may find scuffs and scratches on the bumper covers of the car. If you
see any paint marks on bumpers you may simply rub them off using paint
thinner or nail polish remover. Paint thinner is better and stronger but nail
polish remover will do.
“The Small Details Make a Big Difference!”
If you take the time and find touch up paint for your make and model - and
go around the car simply filling in the scratches with paint- the car can look
10 times better.
I do this to every car that needs it and it completely gives it a face lift! This
will increase your chances of selling because your first impression is the last
impression. You want to get it sold on the first viewing! Just make it look
good!
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Even if the paint doesn't match perfectly it will wipe out eye sore rock chips
and other small defects.
Example #2: Needs Engine Work.
A 2000 Honda Civic nice interior nice body but needs a timing belt and
water pump. Off the bat that is about an $700 - $800 job - maybe cheaper if
you have connections with mechanics.
If you can scoop the car for $800 - $1,200 I say you have yourself a deal.
Many people sell cars that need minor work, leaving you a nice profit to
make. Or you may want to do the job yourself. It would probably cost you
under $200.00 in parts including new oils and spark plugs too.
TIP:
Always make the problem bigger than it is. Make like your doing them
a favor buy taking the car off their hands. This is how you get the deals.
Example #3 Needs Interior work.
Ok, so lets say that you are looking at a 2001 VW Bug. The engine has
77,000 miles on it the AC is cold the body is in excellent condition but the
interior needs work. The headliner is sagging, the vinyl on the door panels
are pealing off and the carpet is stained with Cola.
You will need a interior detail $60. A new headliner and the door panel vinyl
glued and repaired from a upholstery shop. The usual headliner repairs go
for about $100 - $125. Door panels are quite simple to fix you can easily buy
some upholstery contact adhesive and glue loose vinyl yourself. Interior
fixes are very affordable to repair. I have had headliners and small rips in
seats repaired very quickly and easily.
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So if you got the car for $2,000 and put 300.00 into it and sold it for $3,800
you make a nice $1,500 very easily having other people do the work for you.
What Is Good Mileage On a Car?
The normal engine car mileage is roughly 10,000 to 15,000 miles per year in
small urban cities, but if you live in the country I know the mileage is much
higher per year maybe about 15 to 20,000 miles per year maybe more.
So if a 2001 Toyota Camry is on the market now in 2009 what is a good
mileage?
I say if it has 80,000 to 90,000 that's good 60,000 to 70,000 is low mileage
and sometimes you may get cars at this year with only 30,000 to 40,000
miles. Mostly owned by the elderly.
This is when you will want to sell at a higher price range because of the
extremely low mileage. Try to test the sell in between the Retail Excellent
and Private Party Good Values. You will most likely always get more for a
car with low miles.
I have had some cases where I have picked up low mileage cars like this
from the elderly because they just want to get rid of the car. They don't drive
them anymore or don't feel comfortable driving so they let them go very
cheaply.
TIP:
Always bring cash “money talks” be ready to negotiate, you can always
bring your offer higher, so start with a low offer but now too... low to
insult the seller. Just make the offer and go with your gut! You can
always bounce back up.
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Now, if you went to go look at a 2004 Nissan Altima In a small city that has
130,000 miles in 2009 you know that the mileage is a little high... you might
want to ask the seller “Was the car was used as a delivery vehicle?” Or
questions like “Why is the mileage so high?” “Have you had any major
maintenance mechanical work done on it?” Such as timing belt, spark plug
wires or transmission filters and breaks. Any services or flushes?.
Another example of a low mileage car I recently purchased was a 2001
Suzuki esteem it only had 37,000 miles on it!... the people I got the car from
were a military couple that was moving and they told me that they had
purchased the car a year ago from a elderly person and it was a one owner
car. When you hear things like that, that is excellent news for you.
They were really in a rush to move. It was a Sunday night and they were
leaving the next day so I jumped on it asap. Although was it was a little far
from my house maybe 25 miles... I managed to jump on it and negotiate.
They were asking $3,000.00 which was already good deal considering the
low mileage. It was about 10 PM I closed the deal for $2,000 cash. The car
was very clean in and out it had 37,000 miles cold AC all it needed was a
light detail. I sold it five days later for $3,800 cash Here is the actual ad.
-2001 Suzuki's Esteem Wagon GLX
-Only 37k Miles
-Automatic, Cold AC
-2nd Owner
-All Power.
-Am, Fm, CD Stereo.
-Runs Excellent
-New Tires
-Current Papers
-Moving Must Sell By 5/18/08
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Retail Blue Book $5,000
Asking ONLY $4.250 obo
***Call 555-777-9999
Chapter 6
The PME (Profit Margin Estimator) Tactic
In-Depth...
Before negotiating a deal you want to know what the car you're looking at is
worth. You will be using my method using the Kelly Bluebook as your
(Profit Margin Estimator PME).
We will use the Suzuki Esteem above as an example, a 2001 Suzuki Esteem
Wagon GLX as I show you how you should buy and bid on cars.
Now, when looking at the Suzuki Esteem in the bluebook make sure that
you are in the correct year (2001) and you have the correct model GLX
wagon four-door.
First thing I look at is the (Retail Excellent condition value).
You will now see the current values of this car. This is the April – June
2009 Blue book Values.
This deal was done in early 2008 and I want to show you how to bid
with lower mileage cars. The (PME) values shown here are the Current
April 2009 Values *Not what I looked at when I bought it last year.
This is the price dealers go by. So as of April 2009 The (Retail Excellent
Condition Value) is $4,700. Then you want to scan over at the (Trade-In
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Fair and Good Condition Value) over on the left. You are looking at
$1,250 – $1,725. You'll want to buy in this price range or lower. I bought
this car in early 2008 and the values were higher then they are now.
This is the best method that I created for myself from my early days. You
want to buy at the (Trade in Fair and good Value or lower). You might or
may want to pay a little higher if the car is in excellent condition with low
miles.
This trade in value is what a dealer might pay you if you were to trade your
car in for a new car at the dealership. I said this is what they Might Pay, not
will pay. I think that they will like to pay you as less as possible. I have
never traded in a car so I can't give you an experienced answer.
Next, you'll want to look in the bluebook where is says (Private Party
Value Good Condition). As of June 2009 It says $2,950 this is what
everybody sees if they ever look up the car's value on Kelleybluebook.com
or in the consumer bluebook. The same bluebook that you are using to get
your PME.
I like to sell cars below the (Private Party Value Good Condition) price
range and I will ask a higher price if the vehicle is an excellent car with low
miles!.. Usually in between the (Private party Good and Retail Excellent
Values) To test the market. If you get many calls then sell it! If not then
gradually lower your price to blow it out.
This way you really have a competitive advantage for blowing the car out as
quickly as possible. Other people may be asking $5,000 - $4,800 for the car
and you come up and put it in for $4,250 obo while applying a sense of
urgency in your ad. That will really get your phone ringing off the hook.
Depending on the vehicle's condition you can price it below or above the
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private values, just do a little market research and see what other similar cars
are going for and you want to try and compete by giving a better deal.
Yes, there are slow weeks and great weeks...do not be discouraged if you're
sitting on a car more than two weeks... if you have the budget you should be
sitting on 2 cars at all times giving yourself a better chance to sell one in
rotation, easily selling a car a week and making 1-2 thousand per car.
Here is a quick story...
I saw this 2003 Suzuki Grand Vitara in mid 2008 priced at $3,000...it only
had about 40,000 miles on it. I knew it was an immediate deal, I knew that if
I even gave them the $3,000 that they were asking without any negotiating I
can probably still make an instant $1,500 on it and the more I bargain lower
than $3,000 the more profit in my pocket!... so getting it for $2,000 was not
a bad deal!.
When negotiating in person and when looking at the car you never want to
rush anything. Stay calm, just like a poker game you need to bluff... even if
you are serious and you like the car a lot and you have cash in your pocket never looked too excited.
Always feel the buyer out. I always ask first, “what is your best price if I
gave you cash right now?” they usually come down a couple hundred bucks
instantly or they ask you for an offer...this is when you need to ask extra
questions like, “have you done any maintenance work to it?” “Are there
any problems with it?”
Double check everything, ask the same questions twice ...not right after the
same question but later in the conversation. Make them prove to you that
they are honest. Ask, is the title clear? Point out small fixes that you would
like to do if you decide to buy it. “ohh...it looks like it needs a ???? or “this
dent over here I know my wife wont like” ...etc. Use other people like your
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wife or brother, sister...etc for stories.
“I am buying this car for my sister she'll be in town next week and I
know she will want it painted etc...”
From there I take it down starting from a low offer... not too low to insult the
seller but just enough to create a deal between us, a win-win situation.
Check the (PME), depending on how bad they need to get rid of it you can
make an instant deal. Find out their story and why they are selling.
So for the Suzuki in the ad it said they were asking $3,000 and told me that
they would take $2,600 cash when I had asked them in person for their best
price. That is an extra $400 in my pocket already!...after hearing that they
said they'll take $2,600 I made a smirk on my face and kept looking at the
car... showing that I wasn't happy with the price.
By inspecting it and taking my time walking around the car letting them
think that maybe $2,600 was still too high and letting them question
themselves if $2,600 was it the right price or not. “You need to let them
think too!...” take your time, sneak under the hood, ask more questions, even
if you know you're already getting a deal, stay calm because every hundred
that you can take off the top is all extra gravy in your pocket. This is the art
of negotiation. “Hey, I know People who do this with Real Estate!”
Chopping off a whopping $30,000 - $40,000 off of a single deal.
That extra $200 or $300 you take off can be a night out with friends or
family to dinner. Think of it that way ... So I said “Look, I like the car, I'm
getting it for my wife - money is tight for us right now. I'll give you $2,000
cash right now! And held my breath..... Great thing they said ahhh ...OK!
Because I couldn't of held my breath that long! You need to take chances.
Some times you need to make the offer and walk away. You might not want
to walk away but doing so makes you stronger and confident. Sometimes
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you'll get the seller calling you back while you're walking away or when
your in the car 5 min away only finding out that the seller wants to sell the
car to you. Then you go back and get your deal!
TIP:
When you make an offer in person always tell them that you'll give them
$X,xxx amount NOT ...will you take $X,xxx amount? Why do you think I
am saying that?
You don't want to give them a chance to say NO, if you ask them, “Will you
take $X,xxx? amount” You give the seller more of a chance to say NO. But
if you say “Look, I'll give you $X,xxx ammount” you will be in charge of
the offer and you will have a better chance of getting it on your terms. Leave
the ball in your court not theirs.
Here is another example of the (PME) Tactic:
2002 Nissan Sentra GXE.
Look in your Kelly Blue Book under Nissan, you will see the year at the top
of the book. Once you get to the 2001 Nissan Sentra GXE model.
1st. You want to look at the (Trade-In Fair) Value* so you will see $2,750
2nd. Look to the right and view the (Retail Excellent Value) which is
$7,100
This is what the Dealer would ask for the car if it were in Excellent
condition. You Never want to sell at this price unless you don't want to sell
the car!
3rd. Take a look at the (Private Party Good Value) $4,875
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Now that you know the price points like where to start to look and where
you can sell at. 90% of the time I list my cars for sell BELOW the (Private
Party Good Value) even though the car is in EXCELLENT condition.
PME Example:
Lets say you are looking at a 2000 Toyota Rav-4. 2WD
The Retail Excellent as of April-June 2009 is $6,850
The Fair and Good Trade-In is $2,775 - $3,425
Say you look at it and see that it needs the hood painted and a detail. Your
looking at about a $400.00 - $500.00 investment.
They are selling the Rav 4 for $3,500 obo
What is a good price to buy it for to make about $1,500 on it?
Say you want to resell the Rav for $4,500.00 on your end.
You want to try and get it for around $2,500...right? Then invest $500 and
ask $4,750 obo in your ad then let it go for $4,500.
SURE...You might offer $2,200 and might even close around $2,400 $2,500 depending on how fast you act on the deal and how well you
negotiate. You can still make an easy $1,000 on a car like this.
The Retail Excellent Condition Value is $6,850, you can easily ask $5,250
obo... and very well get $5,000 depending on the mileage and condition of
this car.
All cars and all deals will be different. These are just a few examples to get
your mind working and to see how you can estimate your profit margin
before you actually invest your time and money in each vehicle.
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PME Example:
As of April-June 2009 Blue Book Value.
1998 Subaru Impreza 4 cyl L Sedan.
Retail Excellent $5,800
Trade-in Fair and Good $2,000 - $2,550
A good buy would be around $1,200 - $2,000
A good asking price would be $3,750 obo
A good selling price would be $3,000 - $3,500
PME Example:
As of April-June 2009 Blue Book Value.
1999 Honda Civic Hatchback CX.
Retail Excellent $5,575
Trade-in Fair and Good $1,875 - $2,425
A good buy would be $1,200 - $2,000
A good asking price would be $3,550 obo
A good selling price would be $3,000 – $3,500
These are selling at prices that will blow away most competitors, selling
the car very fast! I do this all the time. Your local market might be
different. As long as you scan the papers and Internet for deals you will
know what cars go for what prices and you will start to learn the
market
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Never Loose Money!
PME Review:
By using the (PME) when buying and pricing to sell your cars you will
never lose money. Use this method as your guide in buying and selling.
Remember I like to sell my cars below Retail Excellent Value always! And
you should too. Price them between Private Party Good and below.
If you have a Excellent car with low miles try and sell it between the (Retail
Excellent Condition Value) and the (Private Party Good Values). If the car
you have is a good condition all around beater try and sell below the private
party good value this will make sure you sell the car fast!
Be sure to buy low to give yourself enough room to profit at selling below
the private party value. and if you sell near it or at the private party value
range you know that you will make money guaranteed.
You may ask higher prices for your cars also. You can always drop your
prices. Start high to test the market then drop your prices every day or two
days and see your phone calls start to pick up. Even if you make a quick
$500.00 - $700.00 take it and roll it into the next car to make more money.
Time is money! Save 50% of all your profits to invest in other money
making vehicles.
Once you see what types of cars sell best at a specific price range you will
know the market and become even more confident in buying and selling and
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soon you will master it. It's like anything else, the more you do this the more
it will become natural for you. Remember to take action and just do it. If you
listen on how I teach you to buy you should not loose any money.
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Chapter 7
Negotiation Tactics When Buying and Selling
Making Money On The Buy:
When it comes to successfully making money on any car it boils down to
one thing. That's buying the car as cheap as possible...or even better, getting
it for FREE!
That is essentially where the free money comes from. There are many ways
and places to get cars at a very low price or for free! Again like I always say
keep your eyes open. Open on the street open on the net and open in the
papers too. As of now I have actually scored about 15 – 20 free cars. I don't
know the exact numbers but it is somewhere near those numbers.
I've even put notes on cars that I have noticed sitting in drive ways, parking
lots and on the streets for a long time. A simple card that says “Hey I am
interested in your car, Call me” Sometimes people just don't have the time or
the know how to sell a car and they just do nothing with it but let it sit and
rot.
They even let tow companies pick up the car and give it to them for free, yes
free!
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Tow companies are another great secret resource where I pick up cheap or
free cars. I have a few tow buddies and they actually hook me up with cars
for a few hundred bucks, sometimes free!.
You need to be serious and start making friends in the industry if you are
looking to making money with this long term. It will only become easier to
scoop deals.
I had a friend whose uncle left town and he had a nice Triumph Spitfire that
he just gave me! He had ordered a new interior set for it too... it cost him
$300 and he insisted me to take it for free (although I felt bad about getting
it for free I gave him the $300.00 for the interior kit. I painted it blue. It took
me about 2 days for paint prep and I sold it within 2 weeks for $5,000 cash.
The guy who looked at it fell in love with it and paid me on the spot. I was
so surprised of the quick sale I sent my buddy an extra $500. I had made
4.5k in only 2 days, I was Happy!
When buying a car calculate the cost for repairs as best as you can then
make your offer and bid. NEVER get on a emotional high and over pay for a
car. I've learned the hard way and paid too much for many cars in my early
days. Never go over your final bid price - just stick to your guns, most times
the seller will call or email you back for you to buy the car, and at that point
you are in control.
If the seller calls you back in a day or two because nobody wants to buy his
overpriced car thinking your offer was low until he got lower offers on it
you are now in control.
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You can easily make up a story saying that you are looking at another car
and or you're not sure but maybe your initial offer might of been too high and then offer the seller a little less for the car and still buy it! This way you
get an even better deal. You will see this happen to you at one time or
another for sure.
“Getting Paid On Your Terms”
When it comes to getting what you want you must know how much profit
you'll be happy with. I usually say if I can make a quick $1,000 - $2,000 per
car I'll flip, let it go. Even though I know I can make a little more if I wait a
few more calls or show it to a few more people.
Timing and speed is everything keep moving and keep searching for deals.
Flip faster, you'll get what you want. Buyers will be silly happy that he or
she got a DEAL and everyone is happy! Create a win-win situation.
This is why I like to try and sell below the private party good condition
values. The buyers check the blue book and see that they are getting a deal
while your profiting $1,000 - $2,000 per car.
“Negotiating Over The Phone”
You will have people call you to make an offer over the phone for a car they
haven't even seen. When people do this to you don't take them seriously at
all. They are just tire kickers and are not serious - I usually say “how can
you make me an offer, you haven't even seen the car yet”
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They usually reply “well $2,000 is all I have and I wanted to know if you
would take it?”. If this was for a car that I put on Craigslist for $3,500 obo I
simply say that I already have an offer for $3,000, are you still interested?
They usually say no and hang up...
You will get a lot of people calling you offering you crazy amounts of
money. I had one college girl call me when I was selling a car for $4,500
and she said she has $1,000 in cash...
I said why don't you go look for a car in that price range - I already have an
offer for $4,000 thank you goodbye...
This is how you weed out many of the tire kickers so you don't waste your
time for showings. Try to rid them from the phone first. So if you have a car
for sale at $4,750 and you know that $4,500 is a great deal if you were to sell
it at that price. Then you want to tell callers that you just got an offer of
$4,200 and you are trying to get a little more and that the car is worth it. It is
in excellent condition, the AC is cold and blah blah blah...whatever the hot
points are on that specific car you are selling.
When a potential buyer calls, you must pay attention to their voice and
enthusiasm. Try and listen to their questions and concerns about the car you
have for sale. If you hear a low voice low enthusiasm person most likely you
know that they are tire kickers. You will get many people calling you and
actually say that they will call you back and even make appointments to see
the car and never call back or see the car.
This is just part of the game, there will be a flake rate. Just like anything else
people flake out on decisions. Every minute people change their minds for
no reason at all. You could have the best car deal, the best little beater in
town and get a person who is so serious, even give you a deposit after a test
drive and never hear from him again....well thanks for the free money.
I have had a guy give me a deposit for $300 on a bill of sale contract and
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flake out. On the contract I had wrote that there will be no refund of deposit
because I will turn other potential buyers down to show the car. I would be
losing money.
When making appointments make sure to tell the person to confirm the
appointment and hour before the meeting, this way you know that the buyer
is on the way and you don't need to drive to the meeting location or wait
outside your house for 30 minutes for nothing.
A few up front questions you should ask on the phone when looking for
a deal to purchase:
Hi I'm calling about your 1999 Honda Civic...
1. How many miles are on it?....remember 10-20k a year is average
unless the car was used to travel really long distances.
2. Is it a Clear title or a Salvage title? Clear is Best! I recommend not
buying salvage title cars from private party sellers.
3. Are there any problems with the car?
4. Does the AC work, are there any oil or water leaks?
5. How are the tires, brakes etc.?
6. Are the papers current, registration, safety, smog inspections?
7. How is the interior Clean, Dirty?
8. Finally, you want to ask if they have gotten any offers for the car
yet...they might fake you out with a number but don't take any
seriously.
9. Are you negotiable on the price a little? I ask this sometimes not
always...just go on your gut.
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If yes, ask how much...If they hit you with a price - don't take it seriously, if
they say no, don't worry, you can still look at it and make an offer. If you are
the first to look at it you may scoop a deal. It really is easier when you are
actually doing it.
I say don't take the price seriously because this is how you will play the
game to weed out tire kickers when your selling a car...say, someone calls
you for a car that you are selling and asked if you got an offer on it. I usually
say yes even though I have not. Only to make it appear that the car is going
to move fast if they don't take action ASAP.
For example, say I am selling a 2000 Toyota Camry for $3,995 obo and I
have only $2,200 invested in it.
If I get asked if I had an offer I would say that I just got one for $3,200 and
would like to get a little more for the car. It had new tires, and runs very
good. I have been getting many calls and would like to see if I could get a
little more. Would you like to see it? I might just let it go for around $3,500
Most likely if they come to see it for $3,500 you have a serious buyer and
may want to negotiate when it's time. By taking off an extra $100 when
dealing you might just make their day. For a sale of $3,400 you've made a
quick $1,200. Of course you can play with the price points and make more
or less.
When you know the market value of your car and you know that what your
asking is already a deal, you will be in control of the asking price and get
what you have in mind when it's time to sell.
This is when you know you are starting to master the game, when you
discount the car price and get what you had in mind in the first place.
The buyer feels like he got a super deal, you came down a few hundred
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dollars giving a better deal than what was already a great deal.
This is why you must study the market, to have a sense, know what your car
is worth and know that what you're selling it for. Give a very competitive
good price and you will always sell them fast!
Sometimes I might have sold a car and made an extra $500 - $1,000 on it
easily if I waited, but I came in with a goal in mind saying I want to make
$1,000 on this car quick within three days and I do. The game is a numbers
game. The better the deal you have for the buyer the quicker it will sell.
Which leads to more turn around power. You can quickly double your
money every month or week depending on how good you get.
One Month I needed to make some money fast to pay some bills, I simply
sold 5 cars in one month all starting with a car purchased at $2,500. It rolled
into $4,000
Then I bought 2 cars with that $4,000 sold one for $3,500 and the other for
3,750...with that, bought 2 more cars under $2,500 each and sold those...I
ended up making a profit of close to $8,000 that month. Remember this was
all part time...I don't think I had a weeks work in all cars.
A weeks time meaning 8 hour days 5 days a week totaling 40 work hours.
This is when I was buying cars from a dealer friend. He simply let me use a
bill of sale from his company. We negotiated how much he wanted for the
cars then I listed them and made my profits.
This is why I say stay in that $3,000 - $5,000 selling price tag range. It is the
best overall price range to buy and sell at. You will have people calling you
consistently, with the right car, good mileage and a attractive ad with a sense
of urgency in it. Like (Moving Must Sell!).
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I always try to sell a few hundred below the (Pvt-Party Good) condition
value. Unless you have a top shape low mile in demand car...hey, why not
ask top dollar you can always drop the price down.
You can always test your market by asking high at first then lowering the
price of the car every 2nd day or so. Sometimes I will drop the price $100
every other day until I start getting more calls.
There was a car that I did about 2 years ago it was a 2001 Chrysler PT
Cruiser. The mileage was a little high 122k miles, he was asking $3,800
which was a good selling price. I ended up buying it for $3,200 and invested
$400 into it for minor repair.
A mistake it was! This is why I will tell you not to buy on emotion, just
because it looks cool or you always wanted one does not justify you buying
it.
Always ask yourself why am I doing this?...I have had many mistakes
because of buying on a “cloud 9” the emotional high. I sat on the car for
three weeks trying to sell it for $4,250 obo and finally getting $4,100 which
meant that I made $500 on it.
It was not a loss but not a great investment considering the time it took to
buy an fender and paint it. It was like doing a paint job.
I simply paid too much for the car, the ideal buying price would have been
around $2,000 - $2,500.
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Leaving Emails & Voice Messages
1. When replying to ads on craigslist you will see a URL like this
sale-q3veh-1219284801@craigslist.org just copy and paste it into your mail
box and write a simple letter such as..
Hi I am interested in your 02 Ford Focus please call me at 888-888-8888
Thanks,
Tony.
I usually do this for ads that don't have any phone numbers in them or when
it's late at night and it is not the best time to call the seller. Being the first in
their email box, most likely chances are they will call you first thing in the
morning and you will have first crack at the deal.
If they do have a number and you get a voice mail just simply leave a
message like this...
Hi, I'm calling about the 2001 xxxxx if it's still available please call me back
at 888-888-8888 I have a few questions and might want to look at it. Thanks,
my name is Tony.
Just remember that you might not get calls back within the next day or two,
but sometimes I get calls a week later for cars that I emailed or called and I
have no idea what car they are talking about.
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Just say, I'm sorry what car was this and how much are you asking for it?
Then begin to ask about the car. You will begin to have people call you
about cars that you inquired on weeks or days ago. You are just planting the
seeds for deals.
Then gather the information either in your head or if you are not sure about
the PME on the spot tell them that you will call them back in 20 min you are
a little busy at the moment. Get the PME ask more questions and Go take a
look at it.
“Types Of Sellers, The Peoples Game”
There will be many types of sellers that you will talk to and meet once you
begin to look for deals. The first type of seller is the one who doesn't know
crap about cars and doesn't even know the real value of the car. They might
price it way over bluebook or way under bluebook values. When you spot
these sellers who price cars way below bluebook values you want to make
sure to jump on that car asap! Get it and move on before he starts to get a
boat load of calls on it then realizes that he had priced the car too low.
TIP:
Never leave a deposit on deals like this. Always bring cash and close the
deal asap and also get the title and take the car home immediately. Even if it
means leaving your own car down the street just arrange to pick it up later.
A done deal is a done deal.
This is why I will urge you using a simple Bill Of Sale just to cover your
butt if something ever comes up. Then you will get the seller that over prices
his car like crazy. He has no idea where he got the price from. Maybe just
because he had sunk hundreds or thousands of dollars into a low valued car
and thinks he can get his money back only to find out that he will be sitting
on his car for a long long time.
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You will want him to sit on the car for a few weeks and as you see his price
going down in his advertisements you might want to give him a call and find
out what the story is. Maybe you can scoop a deal.
The other seller is the desperate seller and really knows what the car is worth
but advertises it for a super steal just to get rid of it asap. This is why I will
tell you to stay on top of deals on-line or off line. If you snooze you lose,
these are the sellers where you can make an easy $2,000 - $3,000 dollars off
the car without doing much. Maybe a wash and a detail. These deals really
do come along. I say you will get one every few months if you stay
persistent.
“Types Of Buyers, The Peoples Game”
Just like many sellers you converse with you will have a gang of weird
buyers calling you for a deal. You will get the caller who is the most slow
talking not so sure attitude, asking you questions about the car then turning
into a responsive real buyer.
You must see and try to excite the caller by saying yes its a great car, the AC
is super cold, nothing is wrong with it. It has a new timing belt, New tires
etc ...and just see what happens. People get hooked on other people's
enthusiasm - it really rubs off. Then you make an appointment to show the
car. He looks at it and makes you an offer! WOW.
Make sure to not get too excited about all appointments that you make with
anybody until you get the confirmation call. You must always tell them
please call me when you leave the house or when you're on the way. The
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“double caller” meaning that they called on their promise and they are really
interested. Usually these buyers will buy your car if it is what you say it is.
After setting an appointment with a potential buyer make like they never
called you. This way you will not ponder or wait for the call. 50% of the
time they wont call you back so just forget it. You will start to tell the
serious from the flakes as you do this.
Do not get excited on every call you get because most people are shoppers. I
say for every 4 – 8 calls 2 - 4 will see the car and 1 will buy. I've had
many many first caller buyers too, thats always nice!
The other type of buyer is the one who sounds very enthusiastic, says he
loves the car, loves the price, makes an appointment and never calls back.
Don't worry about these people - they are a dime a dozen.
Then you get the callers that really want your car. They wont even negotiate
with you. You can make them more hungry by telling them that you just had
a person who looked at it and they really like it but they said that it would
take them 2 days to get the money.
Tell them that you want to get rid of the car asap and wouldn't take a deposit
so if you are interested come take a look. Chances are you'll sell it with a
quickness!
The best way to avoid the cocky buyer who wants to give you $800 for a
$2,500 car that you have for sale is by getting rid of him from the phone
stage by saying that you already have an offer for...x,xxx.
Not to just say nothing and let him waist your time by setting a time for a
viewing and all he does is say how bad your car is and how much work it
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needs etc etc....and he'll give you $800 for it.
These are the people who try and scam for cars, they think they can buy and
sell cars and they only wish that they can.
You will come across many types of buyers and sellers in this game, just
make sure to keep your cool and be cool. If you sell the cars that I
recommend to sell, good on gas 4cyl clean cars you will not have a problem
in selling any of them at all.
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Chapter 8
Bonus Profits Revealed
You might be shocked by this but it's very simple. Many people just do not
know how to market their cars for a sale.
The first thing that you need and should do to every car that you sell is give
it a nice wash, a simple interior detail and pick up a few new items for the
interior such as:
1.) New floor mats – if old ones can be cleaned and look like new it is not
necessary to buy new ones.
2.) New steering wheel cover – any Wal-Mart, Target, Kmart or big store
will have these items in the auto section.
3.) Seat Covers - make sure it matches the interior color ...make it blend.
4.) Nice smelling new car air freshener – Febreeze works well, just a few
sprays before each viewing.
All of these interior spruce ups should not cost more than $50 now.
Prices will go up over time but try and limit your budget for this as low as
possible. I literally get my floor mats and steering wheel covers from WalMart for $6.50 each. You should buy them in bulk this way it saves you time
and money rather than to go back and fourth for every car that you sell.
You may want to shop around for seat covers. They can be expensive. Again
if the seats in the car look close to excellent it is your choice to get them or
not. I usually get them for the new smell that it ads to the car. Smell is very
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important when selling a car. Think of it - what do most people like when
they buy a new car? The new car smell of course.
For the exterior of the car you always want to have the rims & tires looking
nice. Buy a few cans of tire foam. The tire shine stuff (any brand will do). I
use TireFoam. If the car has damaged or no hubcaps please pick some new
ones up and put them on because they are so cheap and easy to pop on.
$25.00 hub caps will make the car look so different it will amaze you.
I have literally bought many cars that just needed these things mentioned
above and made an excess of $1,000 profit on these cars. Just a clean and
new hubcaps with some nice car smell and a few good pictures with a nice
ad will make you thousands over and over guaranteed.
TIP:
Make sure you have at least a half tank of gas in the car you are selling.
People don't want to see a car or test drive a car that is on empty. Sometimes
I will fill up the car before showings. People like to see that the car has a full
tank of gas.
The small things like this are very important when making a quick sale.
Always use your enthusiasm, but not too much. You need to make the buyer
think in “His or her mind” That they are getting a great deal.
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“The Secret Headlight Tactic”
So here is my super secret that not many people at all know about. You can
literally start up a business of this method alone and charge an easy $147 for
12 min of work. In fact I just recently started to see a guy advertise on
Craigslist “Headlight Reconditioning” Mopeds and Motorcycles $59 Cars
and Trucks $99.00 and the Headlights and taillights for $150.00. I have been
doing this for about 10 years “Making old grummy headlights look like new
again”.
Do you see how dull and yellowish many millions of cars headlights look? I
am talking about the plastic headlights not the old glass ones. Well, I have
been secretly making these headlights look almost brand new for many years
on customer cars and ones that I sell. It really makes an old looking car with
a dull front end look alive again while also improving the distance of your
headlight brightness by 10x.
Just look at some of cars the next time you go out. You will see millions of
cars that suffer from these dull headlights.
To perform this tactic you will need a few tools and materials. You will need
a car buffer. Not the orbital vibrating ones but the circular buffers. Here are
a few pictures of different buffers you can get. They cost about a $100 $200 for the good ones. You can easily get a used one off of Craigslist
relatively cheap or maybe someone you know might let you use or borrow
one.
You will need to get some rubbing compound and sandpaper. I suggest
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using The 3M 06062 Perfect-It 3000 compound and some 1500 – 2000 grit
wet dry sandpaper.
First wet the headlights then get a piece of sandpaper. The sandpaper comes
in sheets and I usually cut the sheets into four quarter pieces so that it fits in
the palm of your hand. Once you have wet the sandpaper and the headlights
you want to simply sand off all of the yellow and grime off of the plastic
while rinsing it with water when it starts to cloud up.
This step should only take you 2 minutes. Don't be afraid of scratching the
plastic you are using a fine paper that will just clean and remove old and
dirty grime and plastic from the surface. The compound will easily buff out
the headlights leaving a NEW looking headlamp within 2 minutes of buffing
.....Shhhhhh do not tell anyone!
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Just sand the headlights in a circular motion. You will see the dirt, yellow
and brown washing away. Make sure to keep wetting the lights with water
washing away the muck. Apply a strip of the compound on the headlight and
buff it out. Make sure to keep the buffer moving on the surface. Do not stay
in one place too long you will burn the plastic and melt it. 2000 – 2500 rpm
is a good speed to use.
Here are more pictures of a Mazda Protege Headlight Tactic. If you got the
(VTB) course this will also all be on video step-by-step.
Dull Headlights
1. Watersand with 2000 grit
2. Washing off dirt.
3. Apply compound
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Buff for 2 minutes and reapply compound in dull areas to shine. Below are
before and after pictures. Careful not to buff in one section too long you will
burn the plastic headlight. Keep the buffer moving and not staying in one
section for more than 3 seconds.
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Here is the before and after pic of the
Mazda Headlight Tactic (HL)
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Chapter 9
Got a Deal ...Now What?
First, you want to analyze and see what needs to be done asap. If it needs
mechanical fixes that is what you will want to jump on first. If you plan to
fix them yourself I am sure you have the tools and mechanical know how to
do so. If you plan on subbing out the mechanical fixes be sure you know or
can trust the mechanic or shop that will be performing the repairs.
Second, you want to make sure that you can get the work done within the
budget you have calculated using the (PME). After mechanical issues are
taken care of or if the vehicle didn't have any mechanical work needed you
will want to get the car cleaned up and perform the steps in chapter 8. The
bonus spruce up tactic.
Once the car is spruced up and ready for sale. The final step is to take a few
nice digital pictures of the car using a digital camera. If you don't have a
digital camera I recommend getting one. They are very affordable nowadays
and can be bought at any big store such as K-mart, Wall-Mart or Target for
about $50.00
If you do not have the budget to buy a camera at this point that's fine. You
still can get many calls from text ads if you write them right. Having
pictures ads will be more responsive for you and buyers can actually kinda
get an idea of what they are looking at.
Once the car is cleaned up and running great it's time to write eye-catching
ads that will get your phone ringing and having people calling you to give
you money! The fun part. Let's head over to the next chapter on marketing to
sell and writing ads.
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Chapter 10
Marketing To Sell (101)
When you are ready to market you vehicle for sale you have two options.
You can market it on-line or off-line. Some off-line methods are
Newspapers, Pennysavers, classifieds and also posting a For Sale sign on the
car itself.
I don't usually put for sale signs on cars because of the fact that I usually
don't drive them when they are for sale. I keep them clean as possible so I
don't need to waste my time cleaning them up again before each viewing.
Most cars that I have for sale don't have insurance on them. So I wait till I
get a call then show the car. I have them come to me or I meet them around
the block.
The main method I use for marketing is on-line classifieds such as craigslist.
In many cities it's free to post a vehicle for sale - if not free then it might be
a buck or two at the most.
Craigslist has a top posting rule when posting ads for automobiles. This
means that if you post a car for sale on one specific day you may not post the
same ad with the same pictures on the next day. You must wait 3 full days
before you post your ad for that specific car again.
The reason that you want to post everyday is that you want to get on top of
the listings everyday. For example. Say you post your car, a 99 Honda Civic
for sale on Craigslist on Monday morning around 8:30AM. By 12:00PM
there will be about 50 – 200 cars that were posted after your post depending
on the city you live in and how many people are selling cars.
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This makes your car drop down in rankings with every passing hour. People
are constantly posting ads while your exposure gets lower day by day. To
offset this problem, I will show you how to post your ad everyday on any
on-line classified that does not allow you to do so. For Craigslist, you want
to open three separate accounts in total. Three free new email addresses will
also need to be created.
As I showed you how to open a free email and Craigslist account, you will
want to open two more. Now, when you have three accounts open you can
use all accounts and switch them in rotation using your same ad and pictures
allowing you to post your ad every single day.
By posting your ad daily your chances for maximum exposure really kicks
in. After creating your first main car ad and post it in your first account on
day two you will want to log in your Craigslist account and click accounts
then you will see your recent post that you have created a day ago. Click edit
and copy your whole ad by highlighting it with your mouse ...it will become
blue when highlighted. Just left mouse click over the text while holding the
click down you want to drag your mouse over the whole text area until it is
all highlighted.
Then you want to right click in the highlighted area and click on copy. You
may want to open a notepad or MS Word and right click and paste to see if
you copied it correctly. Once you have correctly copied the ad simply delete
the old posting and log out of your account.
Log into your new Craigslist account or any other on-line classified that you
may be using and click post ad in your specific state and city. Click for sale
and click on cars and trucks by owner. You always want to sell your cars by
owner. People like to buy from private party we all tend to think we get
better deals buying from private party sellers. No taxes no hidden fees ...etc.
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Just simply select your city and in the section where you post your ad just
right click and paste your copied ad that you got from your other account.
Select the same pictures that you took of the car by retrieving them from
your documents or pictures folder or wherever you save your photos. This
method will allow you to post your same ad everyday. It only takes 5
minutes to do this. Make sure you do this and post your cars everyday.
Sometimes I will be lazy and forget to post the car everyday and still get
calls two or three days later, but by posting your ad daily, it gives you a
better chance of being seen and selling your car.
This is how you overcome the Craigslist “SLAP”.
Here are the main points for writing ads that get calls ASAP.
Example Headline.
2000 Honda Civic 2 door 5speed. 1.8L Cold AC, New Tires New, TuneUp********
If you can keep the basic outline in this order you have a good headline.
Always make sure to add the benefits in the headline as much as possible
without running out of space. List the most things that are a plus about the
car. Such as Low Miles...what is the Low Mileage? If your car has really
low miles write an ad like this...
2000 Toyota Camry Runs Excellent! Cold AC, All Power, ONLY 65k
Miles -Must GO!
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Another tip is to also test by creating a sense of urgency in your ad. Like you
need to sell it soon. Must go by (a specific date) or (Moving Must Sell!)
Even if you are not really moving and the title is in a family member's name
or a friends name you can still put (Moving Must Sell!) just say that your
friend had already moved and you are doing him a favor by selling his car.
You have the title and it is signed ready to hand over.
Most of the time people will not really even question you they are just
concerned about getting the car for a good deal.
When putting extra bonuses in your ad like (New Timing Belt) (New TuneUp) (New Tires) (New Brakes) etc... I am not saying flat out lie in your ad
just to make it look good. I am saying when buying the car from previous
owners ask them if they have had any recent mechanical fixes done or new
tires installed. Most times sellers won't think about putting these (Hot
Points) in their ads.
So if an owner said the tires were put on 6 months ago and did a timing belt
8,000 miles ago. I think that it's still fairly pretty new. Make sure to ask for
receipts. If they have no receipts or misplaced them just look at the engine to
see if any work had been done. Usually if a timing belt job was done
mechanics usually write the mileage somewhere under the hood with a paint
pen. As for the tires you can easily see if the tires look good or not.
Now when taking this information and writing your own ad you can simply
put (New Tires!) As long as the tires look good. This will pull your buyer in
and 99% of the time they will only glance at the tires when looking at your
vehicle. As for the (New Timing Belt) You can put New Timing Belt in your
ad but when the buyer asks for receipts you can say that you might have
misplaced it but it was done about 8,000 miles ago. Or your friend had lost
the receipts. Whatever the story is be honest.
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The same thing goes for a recent tune-up. You might even do your own oil
change and simple tune-up yourself. This way you will have the receipts and
can show proof to the buyers if they wish to see any receipts.
By asking for all documents when you purchase the car only ads to your
marketing when you sell the car. You can say that you have “All
Maintenance Records” etc...
When writing ads and incorporating these selling points here is how you do
it.
Example ad:
-Headline:
2000 Toyota Tacoma X-Cab. Automatic 4 Cyl Excellent On Gas!
New Timing Belt, Great Tires, Cold AC. Keyless Entry*
Inside of ad:
-2000 Toyota Tacoma X-Cab
-Automatic 4 Cyl
-New Timing Belt
-Excellent Tires
-Cold AC
-AM, FM, CD Stereo
-Keyless Entry
-Excellent on Gas!
============================
6 months. New Tires Paid $550.00
New Timing Belt Paid
$887.45
Alarm, Keyless Entry Paid $215.00
**Total Extras Paid
$1,652.45
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Blue Book Retail $6,550
Asking ONLY
$4,250 obo
Call 888-888-8888
Now you can clearly see that this truck is a DEAL! If you write ads like this
you will show the buyer how much they are saving and how much was
invested in the vehicle. People like to see that money was put into the car.
More like the vehicle was taken care of.
You can make up these prices in a ball park way. Just find out how much a
set of tires are or how much a timing belt job is for the specific vehicle that
you are selling if you don't have any receipts for it. If you do have receipts
then even better.
Ads like this will get your phone ringing off the hook. Please don't flat out
lie about it. Try to get the history of the car and weave it into the ad in
dollars showing value and savings.
Look at the way people place ads and you will clearly see that many people
are loosing money because of plain old bad ad writing. Using this tactic will
make your car appear more attractive and more valuable than a plain ad of
the same car.
Remember if you decide to make mechanical fixes to your car keep all
receipts and records so you have exact numbers to add up in your ad and
always show the value to the buyers.
Make sure to always list the (Blue Book Retail Price) First. Then your
asking price. ****(ONLY) $x,xxx obo
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If blue book prices are irrelevant in your city you must do research and see
what the deals are. what is selling and what is sitting. Calling for cars daily
will help you see what is working.
You might want to call cars that you are thinking of selling just to see how
long they are on the market for. Keep track of listings. You will start to see
the same car for sale get cheaper and cheaper as the weeks go on and when it
finally sells you can get an idea of how much it went for. Call the seller and
make like you were really interested and ask how much it sold for etc...
Here is an example ad of a 99 Honda Accord I recently sold. Take notice of
the layout of the ad. The Headline is very important as well as the body
layout.
Headline On CL – Craigslist:
1999 Honda Accord. 2.4l V-Tech, Manual, Cold AC, All Power, Runs
Excellent! New Tires, Great On Gas! Moving Must Sell***
Body inside of the ad:
-1999 Honda Accord 2.4l V-Tech
-Manual Transmission
-Only 98k Miles W/ New Timing Belt!
-New Tune-Up
-New Tires! Paid $500
-Runs Excellent
-Ice Cold AC
-Retail Bluebook $9,000
-Moving*** Asking Only $4,750 obo
Call 555-666-7777
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*I bought the car for $2,900 Sold it a few days later for $4,500 cash. Of
course I could have made more but I don't like to sit on cars very long*
I also enjoy giving people a great deal. I have had times where I listed a car
for sale. A day later get an offer for $3,800 which was already a $1,000
profit for me, turned it down and got no calls for 2 weeks ...then finally sell
it for $3,500 With a loss of $300...first buyer I would have made and extra
$300 That flat out stinks!..but you will learn not to get too greedy.
If you get a serious buyer right away and you're making decent amount of
money on it get rid of it and move on to the next one. As soon as I started to
move out of the (make-more-out-of-each-car-mindset) I started to flip many
more very quickly. Which lead to more profits.
*Closing Ad Writing Tips*
-Have an EYE Catching Headline
-List (Hot Points) in order as I did in the example ads:
-2000 Toyota Tacoma X-Cab
-Automatic 4 Cyl
-New Timing Belt
-Excellent Tires
-Cold AC
-AM, FM, CD Stereo
-Keyless Entry
-Excellent On Gas!
The more benefits the better!
-Make the first letter capital in all words in your ad
except for when comparing prices and adding values. You can write regular
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with your story. Don't make your story longer than a few sentences.
-End with the Retail blue book value price...
Then put your asking price ...with a (or best offer) (obo)
it makes you look negotiable and will get you more calls. Never put the
word FIRM in your ad. You will cut out many potential buyers.
Finally, Create a sense of urgency in your ad like (Moving Must Sell)
or (Must Sell) (Must Go!) etc...You can test your ad on a daily basis to see
what pulls in calls. Lower prices a little, create a better headline, you get the
idea. Take these tips to heart and skip the trial and error. The Formula
works!
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MAKE THE SALE!
Take Action! Get A Car and just get
started...
Once you have a car to work on...
It's money waiting to be put in YOUR
BANK!
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Chapter 11
Tool Kit's
You can buy a nice toolkit with all of the basics that you will need from
Sears, K-mart, or any auto parts store. Craftsman is my personal favorite
because they are affordable and have a lifetime guarantee.
You can pick up a nice tool kit with about 300 to 500 pieces for around $150
-$300 from Sears or K-mart.
Air compressor is an option for power tools such as ratchets, spray guns,
impact guns, blower nozzle, and many other hand tools air compressors are a
great gadget to have in your garage. I have a small 30 gallon 1.5 hp
craftsman. Got it at Sears for about $275.00 I've had it for years. The great
part about an compressor is that it allows you to inflate tires very quickly,
blow off dust on any surface, use power tools, paint small parts...
heck I painted a car at my shop with the small 30 gal tank when my 120 gal
failed.
The only down side with a small tank when painting a car is that the
pressure is used up very quickly. It will consistently be running when you
are painting. When the compressor is on that long it gets hot and builds up
condensation in the tank creating water in the lines. You want to make sure
you are using a water filter on your tank if you decide to paint a car or parts.
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Auto Body Tools
-Air Compressor
-DA, orbital sander - $130.00 For a good one
-Straight sander - $200.00
-Spray gun (I like Sata) You can also get cheap ones for $100 bucks or so I
recommend a gravity feed type where the liquids are on top of the gun not
below in a can.
-Hammer toolkit – 50.00
-Sanding blocks – 25.00
-Welding dent puller - $250.00
-Sandpaper – most common grits are
80, 150, 120, 220, 360, 400, 600,1000, 1200, 1500, 2000 grit.
If you want to learn more about auto body and paint please visit.....
http://www.LearnAutobodyandPaint.com/
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Chapter 12
Mechanical Pictures and Descriptions
Here are a few pictures that I made for you to give you a basic
overview of engine and under car parts and components.
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Make sure there is no milky residue under the oil cap or inside of the valve
cover. Black oil is not the best thing either. You would probably want to
change the oil if it is black as soon as possible. You will notice that the car
runs better with a fresh batch of oil.
The milky oil means that there is a water leak in the engine, usually caused
by a cracked head or a blown head gasket.
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BONUS Chapter Q&A
Q: Are people who are not dealers only allowed to sell a certain number of
cars per year? I was wondering if i sold like 4 cars in a month wouldn't I get
in trouble?
A: You may sell more than 4 cars per year. Check your local state laws.
You can use friends and family as backups if you need to get the car
registered.
Sometimes sellers will sign the title and give it to you blank. When you sell
it make sure the buyer signs the back stating that he bought it, also use a Bill
Of Sale for security just in case.
Q: I'm looking at buying a XXXXXXX on-line that sells automobiles for the
county. Should I be using KBB trade-in or private party value as my target
buy number?
A: The target number to buy is around the blue book trade-in fair value, or
as low as possible.
Q: I was just wondering, after you find a deal and eventually purchase the
title off the guy, how do you get the car back home? Does AAA have some
type of service that you pay monthly and they can pick up the car from a
certain distance?
A: AAA has a yearly membership very affordable you get 5 tows a year per
membership. You can also ad a family member for $30.00 per year and get
an additional 5 tows a year. The service is great!
Q: What do you think about getting a dealer's license and what are the
advantages and disadvantages.
A: The advantages are that you can store and buy many cars at a time if you
have a lot location. The disadvantages are that you have high overhead costs,
low profit margins and you are pressured to make sales just to pay the rent in
most cases.
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You must go through extensive paperwork just to get a license, you need a
location, handicap accessible restroom and a cash bond just to get started.
Many used car dealers start from home, gain experience and then make a
decision if they want to move forward in business or not.
Q: I have a 95 Honda accord, 200,000km, some rust, small crack in the
windshield, tinted windows, blue exterior and interior, remote starter. The
paint is chipping in a few spots. I want to sell it for $1,350. I'm thinking
about taking it to a mechanic and getting a new paint job and sell it for more.
What do you think, should I leave it as it for $1,350? Or get it painted and
sell it for more? The paint job is between $500-$1000?
A: I say know your market, know what you can sell it for, invest as little as
possible to make a profit. There is no sense to invest an extra $1,000 to
make $100. If you can get a good ROI then why not invest more just make
sure that you can still sell it fast, not sit on it because of the higher price tag.
Q: Do you know of any good places that will do a quality mechanical
inspection before you buy a car?
A: Check your local mechanics. I know gas stations do quick checks if you
are not sure in performing an inspection yourself. Read chapter 4 for
inspection tips.
Q: How do you get the car home if you have no insurance on it?
A: Most insurance companies cover you for any car that you purchase for 30
days. I know that Geico and State Farm will cover you for a new or used car
that you purchase for 30 days. I wouldn't recommend driving the cars that
you sell all over the place without insurance. Meet the buyer at a nearby
shopping mall or have them come over to your house for viewings as much
as possible.
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“Sample” Bill Of Sale
I “Your Name” am selling my “personal, friend or family
members” vehicle “Year Make Model”
Vin# XXXXXXXXXXXXXX. License # xxx-xxx.
On this day of “Month date year” For the sum of “Price in
words” “Price in numbers” in as is condition with no
warranties whatsoever to “Buyers name, address”
This car is in good running condition and does not show any
known problems whatsoever. Purchaser may take vehicle to
any mechanic to get a vehicle inspection at purchasers expense
if seller agrees.
By signing below purchaser agrees to buying the vehicle in as is
condition with no warranties whatsoever.
Date__________
Seller Print____________________ Sign___________________
Buyer Print____________________ Sign___________________
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As of January 2009, Hawaii state law says that you can legally buy and sell
four cars per year but there are no laws stating how many cars you can
actually personally own. I am not giving legal advice here. I advise you must
check your local state laws for compliance on how many cars you can
legally buy and sell per year. I am giving you my secret tactics and strategies
on how to find profitable deals and how to perform small tactics that will
bring you in big profits with cars.
This is not black hat or scamming - this is a legitimate ethical way to make
money. There are literally millions of cars to profit from and thousands of
people are doing it. With the economy in a downward spiral the value of
quality used cars are getting higher than ever.
Stay persistent, and never give up. You will find deals if you calculate the
(PME) then figure out how much time or money is needed to invest and
make your offer. Remember not to over pay for a car. Stick to your guns .
You don't want to waste your time on bad deals. Just be strong enough to
walk away from your maximum bid. Blow off stiff shirt sellers who won't
negotiate with you. You will always find a better deal when you walk away.
Good Luck and just Take Action!!!
To Your Success!
-Tony
p.s.
Please send in your success stories. I have a wall of fame I want to put you
on. I will be waiting for them!
I really hope you enjoyed this manual. This is really the blood of my
success. Just learn from this and use it! By applying these methods in your
dealings you WILL MAKE MONEY!
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